7/27/2019 HR Transhormation
1/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 1
HUMANRESOURCES
TRANSFORMATION:ISITDRIVINGBUSINESSPERFORMANCE?Authors
TonyFilippone,ExecutiveVicePresidentofResearch,HfSResearch
DianeYouden,Principal,HumanResourcesTransformation,PwC
KevinPennington,Director,HumanResourcesTransformation,PwC
PhilFersht,ChiefExecutiveOfficer,HfSResearch
ExecutiveSummaryOurresearchshowsthataggressiveglobalexpansionandchangingworkforcecharacteristicshaveelevatedthe
importanceofrecruiting,talentmanagement,andperformancemanagement.Whilesomehumanresourcesexecutives
havetransformedtheiradministrative-focusedorganizationsandregionalizeddepartmentstoimprovetheirstrategic
valuetotheiroperationalandfunctionalcounterparts,manyorganizationsfallshortoftruetransformation.Whilethese
organizationsfocusonefficiency,theirbusinesscounterpartsstrategictalentmanagementissuesgounresolvedwith
significantopportunitycosttomarketgrowthandothercorporateinitiatives.Followingatransformation,doesyour
humanresourcesteamfocusmoreonthebusinessthanadministration?
Thispaperleveragesextensivequantitativeresearchintoglobaltrendsaswellasinterviewswithseniorhumanresources
andbusinessleadersthat:
Uncovertheglobaltrendsthathaveadvancedthestrategicroleofhumanresources. Weshareresearchfrominterviewsanddatacollectedfromover400humanresourcespractitionersandover350globalbusiness
executivesidentifyingwhyhumanresourcesexecutivesarebeingaskedtotransformtheirorganizations.
Exposeso-calledhumanresourcestransformationsforwhattheyreallyare. Basedonaseriesofinterviewswithhumanresourcesexecutiveswhohavesuccessfullytransformedtheirorganizations,weexplainwhyso
manyorganizationsfailtotransformbecausetheyfocusonadministrativeprocessimprovements,resourcesput
inchargeofday-to-dayprocessmanagementlacktheskillsandaccountabilitytoexecuteonthevision,and
humanresourcesleadershiplacksomeofthecompetenciesnecessarytodelivervaluetothebusiness.
Identifyhowhumanresourcesexecutivessuccessfullytransformtheirorganizationstosupportbusinessleaders.Weidentifythemajorshiftahumanresourcesorganizationundergoeswhenittrulytransformsits
capabilities.Wesharehowleadersfromtheseorganizationsbreakthroughwhereothershavefailedandincludeacasestudyfromalargeglobalorganizationthatdiditsuccessfully.
7/27/2019 HR Transhormation
2/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 2
TableofContents
UnprecedentedGlobalBusinessDynamicsPutHRintheHotSeat 3
TheWorkforceEnvironmentIsChanging 3
HumanResourcesExecutivesCanBeSubstantiveLeadersinTimesofChange 6
HumanResourcesTransformationsThrustintotheCorporateSpotlight 8
OperationalEfficiencyObjectivesFallShortWhenItComestoTransformation 8
GlobalSolutionsStillRequireLocalStrategytoBeEffective 9
FlexibilityIsKey:AchievingTransformationIsLikeChangingtheWheelsofaCarWhileDriving 10
ListentotheBusinessManagers:ItStillTakesTwotoTango 10
PracticeWhatYouPreach:EnsureYourOwnHumanResourcesTalentIsLeadingEdge 11
MakeTransformationReal:TieIttoCommonlyUnderstoodBusinessObjectives 11
WhenTransformationsAreTrulyTransformational 12
TheDifferenceaSuccessfulTransformationMakes 12
EightCommonTraitsofOrganizationsThatSuccessfullyUndergoTransformation 13
TheBottomLine:LeadersMustCultivatetheTalentwithinHumanResourcestoMakeTransformationPossible 16
AbouttheAuthors 18
AboutHfSResearch 20
AboutPwC 20
7/27/2019 HR Transhormation
3/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 3
UnprecedentedGlobalBusinessDynamicsPutHRintheHotSeat
Behindtheproductdesignandtechnologicalinnovationsthatcatapultorganizationsintowell-respectedindustryleaders
aremanagementsinvestmentsintheassetsthatcreatetomorrow:people.PeoplearetheforcebehindGooglesrapid
growthfromsearchengineleadertosoftwareandservicegiant,withproductslikeAdWords,Android,Gmail,andChrome.
Applesaward-winningdesigngeniusisovershadowedbyitssupplychainmanagementdiscipline,whichenablesthecompanytoproducediscretelyandshipmillionsofnewly-launchedproductstothirty-fivecountrieswithindaysoftheir
announcement.Today,talenttrulydifferentiatesfirmsandourresearchshowsthatfirmsarepressuredbythe
combinationofshiftingglobaleconomicsandchangingtalentrequirements.
TheWorkforceEnvironmentIsChanging
Ascompaniesembraceglobalization,technology,andcompetitivepressures(seeSevenGlobalTrendslaterinthis
report),locallabormarketsarerapidlyevolvingandchangingandtheskillshortagesarepushinghumanresourcesinto
thefrontlinesofacquiring,developing,andretainingtalent.HfSResearchsurveyed436humanresourcesexecutivesto
understandthefactorsaffectingcompaniesworkforces(seeExhibit1),andfindingsconfirmedthatworkercollaboration
andnewtechnologiesskillswererankedasthemostimportantfactors(both58percent),followedbyskillandtalent
shortages(56percent).
Exhibit1:FactorsAffectingtheGlobalWorkforce
Source:HfSResearch2011,N=436HumanResourcesandBusinessExecutives
Thereareseveralimplications:
Globalbusinessdynamicshavestretchedtheavailabilityoftalent,particularlyindevelopingcountries. Astalent
marketstighten,costshaveincreasedandlimitedavailabilityhasimpactedtheeffectivenessofcorporatestrategies.InPwCs15
thAnnualGlobalCEOSurvey,43percentofrespondentsfelttalentcostshadacceleratedfasterthananticipated
(seeExhibit2).Moreimportantly,thesurveyalsofoundthat31percentacknowledgedtheirrateofinnovationwas
impacted,and29percentfelttheycouldnotpursuemarketstrategies.
0% 20% 40% 60% 80% 100%
FreeAgentWorkforce
ResultsOnlyWorkEnvironment
DecentralizedDecisionMaking
MobileWorkforce
SocialMedia
MillennialWorkforce
GlobalWorkforce
AgingWorkforce
SpeedofChangeinBusiness
Skill/TalentShortages
NewTechnologies
WorkerCollaboraon
Towhatextentarethefollowingfutureofworkdriversimportanttoyourcompany?
VeryImportant Important Somewhat Important Not Important
7/27/2019 HR Transhormation
4/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 4
Exhibit2:TalentConstraintsImpairGrowthandProductivity
Source:PwC15thAnnualGlobalCEOSurvey2012,;N=1,258
Clearly,globaleconomicshavecausedbusinessstrategiestoincreasetheirrelianceontalent.Inastudyweconducted
surveying362businessleadersonshiftingbusinessprioritiesaffectingoperations,gainingaccesstotalentandcapabilities
anddrivingculturalchangenearlydoubledinimportance,reducingcosts(-15%)decreasedintotalimportance.
Exhibit3:ChangeinBusinessObjectivesImportancefromProjectInitiationtoToday
Source:HfSResearch2012andPwC,N=188enterpriseswithover$3billioninrevenue
Businessstrategiesareincreasinglyforcingemployeestocollaborateacrosscustomersegments,regions,andprocesses,
whichrequireschangestoorganizationdesign,performancemanagement,andculture. Organizationshavebeenforced
toadoptglobalbusinessprocessownershipmodels,learntorelyonoutsourcingvendors,anddeveloporenhanceshared
servicestrategies.AsshowninExhibit4,58percentoffirmsuseahybridofsharedservicesandoutsourcingmodels.
Behindthesebusinessstrategies,culturesmustbepreparedforneworganizationalrealities.Neworganizationdesignsare
required,andexecutiveleadershipmustbecultivatedtomanagemoreresponsibilitythatisspreadglobally.Alongwith
neworganizationaldesigns,businessleadersneedtoupdateperformancemanagementprocessestoreflectnewgoals.
0% 15% 30% 45%
Ourproduconand/orservicedeliveryqualitystandardsfell
Wecancelledordelayedakeystrategiciniave
Wecouldntachievegrowthforecastsinoverseasmarkets
Wecouldn'tachievegrowthforecastsinthecountrywherewearebased
Wewereunabletopursueamarketopportunity
Weweren'tabletoinnovateeffecvely
Ourtalent-relatedexpensesrosemorethanexpected
-20% 0% 20% 40% 60% 80% 100%
Reducecosts
Increasescalabilityandflexibilityofoperaons
Supportglobalgrowthstrategy
improveaccesstotechnology
Transformprocesses
Alignsupportserviceswithglobalcorporatestrategy
Driveprocessefficiency
Improvecompliancecapabilies
Driveculturalchange
Gainaccesstotalentandcapabilies
%ChangeinImportancefromProjectIni\a\ontoToday
Howimportantwerethefollowingbusinessobjec\vesbehindyourcompany'sopera\ng
strategy?
7/27/2019 HR Transhormation
5/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 5
7/27/2019 HR Transhormation
6/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 6
Asonehumanresourcesexecutivefromaglobalchemicalscompanyexplained,Thepaceoforganizationalchangeisso
great,executivesarestrugglingtokeeptheirleadershipfocused.Buttherealchallengeisdevelopingandmaintaininga
leadershippipelinewhiletheworldarounduschangeseverythreemonths.
Exhibit4:OrganizationalOperationsModels
Source:HfSResearch,2012,N=362Enterprises
Technologyimpactseveryemployee. Technologynolongerremainsthedomainoftheoperationsemployeetaskedwith
performingadministrativework.Today,ITprovidesrichanalyticsnecessarytoforecastfinancialperformance,analyze
customerandsupplierdynamics,monitorworkforcebehavior,andtrackproductperformance.Moreimportantly,
complextransactionmanagementrequiressophisticateduseoftoolstoanalyzeproblems,preferences,andhistorical
patterns.Whetheranemployeeisadjudicatingaclaim,managingproductdevelopment,orcollectingoverpaidfunds,he
orshemusthavethetechnologyskillstoperformthenecessaryresearchandtakeaction.Onehumanresourcesexecutive
explainedhisdilemmathisway,Whenwereplacedourglobalshippinglogisticssystem,oursupplychaingroundtoahalt.
Wehadspentmonthstrainingusersonthesystemtheyknewhowtousetheapplicationintheclassroom,butthe
businessprocesswassodifferent,ourusersdidntknowhowtouseitintherealworld.
HumanResourcesExecutivesCanBeSubstantiveLeadersinTimesofChange
Thegoodnewsis,despitethelackofinvestmentinthefunction,humanresourcesexecutivesarestillviewedastheleader
inareasthatmatter.AsshowninExhibit5,thehumanresourceexecutiveisviewedasacriticalleaderandadvisorto
businessstakeholders.Mostimportantly,nearly62percentofrespondentsfeltthathumanresourcesdepartmentsneed
toservealeadershiproleinmanagingskillandtalentshortages.Thisisavitalroleinthecontextofchangingbusiness
strategies.HRleadersneedtoembracethisrolechange.
-20%
0%
20%
40%
60%
Useahybridofsharedservicesand
outsourcing
Usesharedservices(limited/no
outsourcing)
Useoutsourcing(limited/noshared
services)
Nosharedservicesoroutsourcing
Whichofthefollowingdeliveryframeworksbestdescribeshowyour
organiza\oncurrentlyoperates?
7/27/2019 HR Transhormation
7/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 7
Exhibit5:WhereHumanResourcesIsExpectedtoLead
Source:HfSResearch,2011;N=436HumanResourcesandBusinessExecutives
SevenGlobalBusinessTrendsDrivingtheNeedforHumanResourcestoTransform
1. GlobalexpansionofWesterncompaniesintocountrieswithdevelopingeconomies. SlowingeconomiesintheUnitedStatesandEuropehavedrivengrowth-seekingcompaniestotapintorapidlydevelopingeconomiesin
China,India,andLatinAmerica.
2. ExpansionofleadingregionalcompaniesfromAsiaandLatinAmericaintoWesterncountries. Onceconsideredonlyregionalforces,AsianandLatinAmericanconglomerateshaveexpandedtoNorthAmericanandEuropean
countriesinsearchofnewcustomers.Theseorganizationslow-costoperationscreateopportunisticgrowthopportunitiesinWesterncountries,wherepotentialcustomersaffectedbyslowingeconomiesseekless
expensiveproducts.
3. Economichardshipsofthelastdecadehaveleftlittlefatwithinorganizations. Recessionsofthelastdecadeandweakereconomieshaveforcedbusinessleaderstomakemajorstaffreductions.Todaysleanercompanies
requireskillstotransformbusinessoperationsthroughprocessreengineeringandleveragingexistingcapabilities
acrossmoremarkets.
4. Companiesoperateunderincreasinglycomplexregulatoryenvironments. Financial,environmental,consumerrights,andprivacystandardshaveadvancedinbothWesternandEasterneconomies.Employeesmustbe
knowledgeableoflocalmarketrequirementswhileremainingvigilantagainstbuildinginefficienciesintolocal
processes.
5. Thepaceofbusinesshasaccelerated. Organizationsmustrapidlylaunchmultipleproductsintomanycountriesatonetimetodriverevenueobjectives.Theymustreactquicklytocompetitiveproductsandmarketingand
maintaincloserelationshipswiththeircustomers,whosebusinessenvironmentsarealsochangingquicklyallof
whichencouragescompaniestoinvestintalentstrategies.
0% 20% 40% 60% 80% 100%
DecentralizedDecisionMaking
ResultsOnlyWorkEnvironment
NewTechnologies
SpeedofChangeinBusiness
FreeAgentWorkforce
SocialMedia
MobileWorkforce
GlobalWorkforce
WorkerCollaboraon
MillennialWorkforce
AgingWorkforce
Skill/TalentShortages
Inyourorganiza\on,whatroledoestheHRfunc\onplayinshapinghowacompany
respondstothefutureofworkdrivers?
LeadershipRole AdvisorRole Execuon-onlyRole InformedOnly
7/27/2019 HR Transhormation
8/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 8
6. Organizationsarerealigningworkwithintheirteamstocreatenimblerstandardizedglobalbusinessprocesses. Managementneedsbetter,moreconsistentinformation.Customersandsupplychainprocessesdemandsimpler,
butstandardglobalprocesses.Asaresult,manyorganizationsarecreatingglobalbusinessprocessownership
modelsthatdriveconsistentprocessesandimproveallocationofcapital.
7. Simpleworkhasbeenautomatedoroutsourcedtheremainingworkiscomplex. Theneedfortalentisprimarilydrivenbythesheercomplexityofworkthatemployeesmustnowhandle.MassiveinvestmentsinERP,
MRP,andCRMsystemsoverthelastdecadehaveleftemployeeswiththeremainingcomplexwork.Employees
nowneedtodesignandmanageself-serviceportalsandinventorymanagementsystems.
Source:HfSResearchandPwC15thAnnualGlobalCEOSurvey2012
HumanResourcesTransformationsThrustintotheCorporateSpotlight
Humanresourcesexecutiveshavebeencaughtupinthewhirlwindofchange.Theyvebeenaskedtocentralize,globalize,
cutcostsandstaff,andembracenewtechnologyjustliketheirbusinesscounterparts.Andsomehaveovervaluedtheir
changesbybrandingthemasHRtransformation.Yet,whentheyvedonelittlemorethanupdatetechnologyorshiftservicestoasharedservicescenter,aretheyreallytransformed?Wefoundsixparticularchallengesthatprevented
organizationsfromsucceeding:
Preferenceforwell-knownprocessefficiencytacticsoverdevelopingnewstrategiccapabilities. Ineffectivestrategiesforhandlingglobalrequirements. Unfamiliaritywiththeneedtopredictandadapttochangingbusinesstrends. Businesspartnerswhowereslowtoleveragehumanresourcesinnewways. Thelackofaburningplatformtodrivechange. Humanresourcesteamsthatdidntupgradetheirowntalenttodelivernewcapabilities.
OperationalEfficiencyObjectivesFallShortWhenItComestoTransformation
Mosttransformationsareexercisesintechnologyimplementation,outsourcing,orprocessefficiency.Leadersbecome
sotransfixedonriddingtheirorganizationsofinefficiencyandwaste,theyneglecttotransform.Humanresources
executivesfocusonputtingoutfires,targetingoneafteranother.Armedwithbenchmarkprocessandcostdataandthe
well-intentionedpanaceaoffoldingallsystemsintoasinglesystemofrecord,theteammarchesdowntheroadtoward
administrativeefficiency.Itsacomfortable,eveneasy,target:processredesignandtechnologycanfixallyourills.
Theproblemwithcreatingaleaner,moreefficienthumanresourcesorganizationisthattodaysbusinessleadershipneeds
somethingdifferent.Surely,everyoneneedstobecosteffectiveandservetheirinternalcustomersefficiently,butthe
changingglobalbusinessmarketrequireshumanresourcestodeliveradifferentarrayofservices,notthesameservices
forless.Ahumanresourcesexecutivewhohadledoneofthelargestglobalhumanresourcestransformationsdescribed
whathappenedwhenheinitiallyfollowedthispath,EverydayIwasbotheredbythelackofinnovation.Weweredoingwhateveryoneelsewas.Outsourcingwasn'tinnovative.Wemovedpuzzlepieces.Wespentmillionsontechnologyand
trainingourteams.Absolutelynoneofthatwasinnovative.
Byfocusingonadministrativegoals,humanresourcesleadersoverlooktheneedtodevelopdifferentservices,suchas
maximizingbusinesstimespentonworkforceproductivity,identifyinghowbusinessperformanceisimpactedby
workforcemetrics,understandingtherootcausebehindfirst-yearandhigh-performerattrition,andcoordinating
successionplanningandmanagementdevelopmentactivities.Buildingthecapabilitiestodelivertheseservicesrequiresa
7/27/2019 HR Transhormation
9/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 9
truetransformation.
WhatIsaHumanResourcesTransformation?
Anorganization thatundergoesa human resourcestransformation redefineshow itshuman resourcesteam collaborateswiththe
business to execute business strategy. Through the transformation, an administratively focused human resources organization
assumesaccountabilitytoachievebusinessobjectives,insteadofhumanresourcesobjectives.Humanresourcestransformations:
Expose the humanresources organization to the true business of a company. Human resources teammembersmustunderstandthetruenatureoftheirbusinessscompetitiveenvironmentandthecompanysexecutivestrategiestoachieve
success.Thisunderstandingisntsimplya responsibilityof humanresourcesleadership.Forprocessestodelivertheirtrue
value,everymemberoftheteamhastobeingrainedintothebusiness.
Assignaccountabilitytothehumanresourcesorganizationtoachievebusinessgoals. Transformationsarentaboutgettingtoknowyourneighbortheyreabouttakinganactiveroleinexecutionofbusinessstrategy.Sinceexecutionrarelyhappens
insilos,accountabilityforcesboththebusinessandhumanresourcestocollaborate.
Redefinethemetricsofsuccess. Itstimetopushyourratiosofhumanresourcesstaff-to-employeesmetricsaway!Metricslikethesearecost-efficiencymeasuresthatrarelyprovidebusinessbenefit.Therightmetricsfocusonbusinesschallenges,
suchasincentivecompensationdifferentialsbetweenhighandlowperformers,successionplanreadiness,anddistributionofperformancemanagementratings.Yourmetricshavetochangetomeetyourtransformationaspirations.
Reconfigure human resources process and technology to contribute to strategy. Whereas most human resourcesorganizationsaredesignedtodelivercost-effectiveservice,transformedhumanresourcesorganizationsadaptpracticesthat
deliverbusinessthroughtheirprocesses.Sincethevalueleveris different,theprocessesareoftendifferent.For example,
performancemanagementprocessesmustchangefromanannualdocumentationprocesstoaprocessthatprogressively
develops talent, quantifies skills, and identifies high performance.With that change, analytics and technology-enabled
performancemanagementtoolsbecomeessential.
GlobalSolutionsStillRequireLocalStrategytoBeEffective
Manytransformationsrunintoroadblocksorlimittheireffectivenesswhentheyfailtoconsidermarketrequirements.TakeforexamplethefindinginPwCs15
thAnnualGlobalCEOSurveythatsourcingandretainingtalentinemerging
marketsisconsistentlyachallenge(seeExhibit6).Recruitingindevelopingmarketsoftenrequiresdifferentstrategies.
Organizationsthatapproacheverymarketwithaone-size-fits-allsourcingapproachoftenimproveperformance,but
clearlyleavevalueonthetablebynotleveragingeffectivelocalstrategies.Transformationsthatapproachallprocesses
withthismindsetseverelylimittheirvalueproposition.Ofequalimportance,thismindsetalsodisenfranchiseslocal
leadership,therebysustaininghumanresourcesimageasacorporatebureaucracythatdoesntunderstandthebusiness.
7/27/2019 HR Transhormation
10/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 10
Exhibit6:SourcingEmergingMarketsTalentRemainsaMajorConcern
Source:PwC15
thAnnualGlobalCEOSurvey2012,;N=621and637
FlexibilityIsKey:AchievingTransformationIsLikeChangingtheWheelsofaCarWhileDriving
Aconsistentthemeinourinterviewswasjusthowfrequentlythebusinesschangesandhowthosechangesstall
transformations.Frequentleadershipchangesaccompaniedbyreorganizationsplayamajorfactor,butchangesinthe
actualbusinessenvironmentasaresultofnewproductintroductions,newregulations,orcompetitivepressurecompel
organizationstoshifttheirobjectives,too.WhileEasternEuropemayhavebeenanidealmarketexpansionopportunityin
oneyear,souringWesterneconomiescreatedopportunitiesforsomeorganizationstoopportunisticallyshiftgearsand
addressamoreprofitablemarket.OneseniorhumanresourcesleaderforalargeUSfederalagencysaid,Overnight,our
missionchangedfromchasingcriminalstotrackingterrorists.Humanresourcesneededtochangetosupportthebusiness,
butearlyonwelackedtheabilitytoadapt.Toooften,humanresourcesorganizationslacktheflexibilitytoadaptto
evolvingmarketconditions.Whilewell-developedhumanresourcesteamspredictchangesandadaptwiththem,mostteamsareblindsidedbychange.Highfrequenciesofchangecaneventuallyfatigueorganizationsandstalltheir
transformation,whichisanissueforbothhumanresourcesandbusinessleadersalike.
ListentotheBusinessManagers:ItStillTakesTwotoTango
Transformationcannotbeforcedontomanagers;ithastobeacollaborativeandrewardingprocessforbothsides.Many
transformationsarestalledbybusinessleaderswhoarentvestedinthechangeshumanresourcesismaking,butina
humanresourcestransformation,thebusinessalsoneedstochangeitsways.Foryears,businessleadershave
experiencedonlythemosttacticalofhumanresourcescapabilitiesandhavelearnedtousethemsolelyinthisway.Need
tohiresomeoneaftertheyleave?Callyourhumanresourcesrepresentative.Withtheexceptionofcompliance-related
training,businessexecutivesandlinemanagershavegrownaccustomedtoexpectlittlefromtheirhumanresources
representativeexcepttoofferhelpfuladviceatcriticalmoments.Oneseniorhumanresourcesexecutivedescribedthe
meetingsheattendedtocommunicatehowthebusinessneededtointeractwithhisteamdifferently.Thoseworkshops
werereallyhard.Linemanagerscouldn'twaittogetoutoftheroom.Theyjustwantedustokeepourcostsdownandsay
yestothethingstheywantedtodo.
HRexecutivesneedtospendmoreone-on-onetimewiththeirbusinessmanagerstounderstandtheirrealtalentissues
andspendalotoftimelisteningbeforepressinghometransformationinitiatives.Transformationcanonlybeeffective
onceHRandthebusinessfunctionleaderareallboughtintotheobjectivesandoutcomes.
0% 10% 20% 30% 40% 50% 60%
Overseasunitheads
Seniormanagementteam
Youngerworkers
Skilledproduconworkers
High-potenalmiddlemanagers
EmergingMarkets DevelopedMarkets
7/27/2019 HR Transhormation
11/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 11
PracticeWhatYouPreach:EnsureYourOwnHumanResourcesTalentIsLeadingEdge
Upgradingtalentisacriticalandongoingendeavorofanyleadingorganization,andhumanresourcesisnodifferent.
However,manytransformationsstallbecausetheteamsaretooheavilyskilledintacticalexecutionandlacktheanalytical
consultingskillsnecessarytoserveasstrategiccontributors.Ourresearchshowsthathumanresourcesexecutivesare
unsatisfiedwiththeirabilitytomanagekeyworkforcedrivers.AsshowninExhibit7,lessthan9percentofrespondentsfeltverysatisfiedwiththeirabilitytomanagekeydrivers,likeworkforceglobalization,thespeedofbusinesschange,and
skillandtalentshortages.Worseyet,lessthan42percentevenfeltsatisfiedwiththeirabilitytomanagethesecritical
issues.
Exhibit7:HumanResourcesSatisfactionwithItsAbilitytoManageKeyDrivers
Source:HfSResearch,2011;N=436HumanResourcesandBusinessExecutives
Severaloftheorganizationswespoketocitedchallengesinhiringexperiencedhumanresourcesprofessionalswith
strategicskills,especiallyincertainareasoftheworldwherehumanresourceswastrulyabackofficefunction.Itdoesn't
worktoputHRmanagersinthefrontline,explainedoneseniorhumanresourcesleader.Thesadrealityisthatpeople
aregoingtolosetheirjobsbecausetheyarenotwellequippedtodothenewjobs.Wehadnewrolesandresponsibilities.
Thereareahighnumberoffailures.
Alongwithashiftinstrategycomesafundamentalshiftinrolesandresponsibilitiesofafarmorestrategicnature.This
requiresamajorchangeinpersonnelthatfartoofeworganizationsundertake.Saidoneseniorleader,Inowhiretwo
typesofpeople:statisticalanalystsandindustrialpsychologists.IdontwantpeoplewhocantalkaboutFMLA.Ineed
peoplewhocantalkthroughthenumbersandthepeoplemotivatorstohelpthemmanagechanges.
MakeTransformationReal:TieIttoCommonlyUnderstoodBusinessObjectivesTransformationisntaboutfixingone-offproblems,butthatsexactlytherutinwhichmanyhumanresourcesteamsfind
themselves.Inevitably,itleadstoahodgepodgeofreorganizationsandsystemupgradesthatdonttrulymattertothe
business.Withoutadirecttietocorporatestrategy,humanresourcesteamsquicklyfadeintoirrelevance.Anexecutive
vicepresidentofhumanresourcesdescribedhisorganizationbeforehewashiredtotransformtheirteamasamerry
bandofdo-goodersthateachyearcreatedanewtop10listofthingstofixwithoutacommonthreadintheentire
thing.
0% 20% 40% 60% 80% 100%
SocialMedia
SpeedofChangeinBusiness
ResultsOnlyWorkEnvironment
FreeAgentWorkforce
Skill/TalentShortages
MobileWorkforce
MillennialWorkforce
DecentralizedDecisionMaking
AgingWorkforce
GlobalWorkforce
NewTechnologies
WorkerCollaboraon
Howsa\sfiedareyouwithyour(oryourfunc\ons)abilitytomanagethefollowing
futureofworkdriversinawaythatsupportsyourcompanysobjec\ves?
VerySasfied Sasfied SomewhatSasfied NotSasfied
7/27/2019 HR Transhormation
12/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 12
Humanresourcesteamsneedacommonstrategy,acalltoarms,toundertakeacompletelynewroleinanorganization.It
helpsinternalstakeholderscollaborateandprioritize,andcommunicatesthechangingroleofhumanresourcesto
externalstakeholdersalongwiththeirnewengagementmodels.Humanresourcestransformationsneedtodirectly
supporttheorganizationsbigpictureobjectives.Aseniorleadertoldus,WetriedthisfirstintheArctic,but,withouta
businesschallenge,noonetookitseriously.HRinitselfcannotwalkinandchangewithoutthebusinessneedinga
change.Ifhumanresourcesisntareadycontributortotheissuesthebusinessfaces,itstransformationisnt
meaningful.
WhenTransformationsAreTrulyTransformational
Eventhoughmostorganizationsexperiencemorethanoneofthepitfallswevedescribed,someorganizationssuccessfully
transformtheirhumanresourcesteamintoabusiness-focusedorganizationthathardlyresemblesatraditionalhuman
resourcesteam.
TheDifferenceaSuccessfulTransformationMakes
Organizationsthatsuccessfullyundergoatransformationaresubstantiallydifferentthanthosethattryandfailorthose
thatneverattemptone.AsshowninExhibit8,thereareanumberofareasthatdifferentiatebusiness-focusedhuman
resourcesorganizations.
Exhibit8:HumanResourcesOrganizationsBeforeandAfter
AdministrativelyFocusedHuman
ResourcesOrganizations
Dimension Business-FocusedHumanResources
Organizations
Atprocesstouchpointsorforexceptions BusinessEngagement Activelyinvolvedinaddressingbusiness
issuesandorganizationaldevelopment
opportunities
Managingcostandefficiencyofhuman
resourcesteam,alongwithexecutive
leadershipsspecialprojects
Strategy Developingtalentmanagementandhuman
capitalmanagementstrategiesthatdrive
businesssuccess
Focusedoncompliance,processefficiency,
andhumanresourcesrequirements
Talent Analytic,insightful,andrelationship
focused;strongknowledgeofbusiness
Focusedonmanagingmultiplesystems
andprocessestohumanresources
timelines
Operations Focusedonbenchmarkefficiency,butwith
acarefulfocusonoperationswithstrategic
value
Source:HfSResearchandPwC,2012
Whenitcomestobusinessengagement,business-focusedhumanresourcesorganizationsdevelopthecorporateagenda
almostasmuchastheyactivelyexecuteagainstit.Theyengagewiththebusinessasacollectiveteaminsteadofengaging
transactionalpointsofcontact.Whilemajorgrowthstrategiesaredevelopedbybusinessleaders,thetalentmanagementstrategytosupporttheseobjectivesareequallyimportant,whiletheycontinuetofocusoncosteffectiveoperational
excellence.Talentwithintheteammayultimatelydifferentiateabusiness-focusedteam.Whileblockingandtackling
remainsimportant,engagingstrategicallyrequiresadvancedanalyticskills,asolidunderstandingofthebusiness,and
superiororganizationaldevelopmentcapabilities.Thishigh-performingteamleveragestheirexpertisetoengagewiththe
business,butalsotocreatestrategicvaluefromtacticalprocesses.
7/27/2019 HR Transhormation
13/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 13
EightCommonTraitsofOrganizationsThatSuccessfullyUndergoTransformation
Allisnotlostontheroadtotransformation.Despitethedifferencescompanieshave,suchasindustries,regions,and
leadership,thosethatsuccessfullytransformexhibiteightcommontraitsshowninExhibit9:
Exhibit9:EightCommonTraitsofTransformedOrganizations
Source:HfSResearchandPwC,2012
EmployTalentManagementStrategiestoEmpowerCorporateStrategies
Oneofthedefiningcharacteristicsofatransformedhumanresourcesorganizationishowcloselytalentmanagement
strategiesalignwithcorporatestrategies.Theroleofhumanresourcesisntsimplytoaccountforcostsofresources,but
tohelpbusinessleadersbuildbusinessplanstojustifytheirinvestment.Withorganizationsnowfocusedonglobal
businessprocessownershipandenteringnewgeographicmarkets,humanresourcesmustarmitsbusinessleadership
withthelabormarketessentials.Therightinformationcanpositionacompanyingeographiclocationswheretheycan
improvetheiroddsofsuccess.Inaddition,asbusinessleaderschangetheirbusinessstrategiesanddeploynewproducts
andservices,humanresourcesleadersmusthelpbusinessleaderswithadjustmentsintheirapproachtotalent
management.Possiblymostimportantly,transformedhumanresourcesteamsproactivelyhelpbusinessleadersmanage
thevaluepropositionofhumancapitalbydifferentiatingbetweencriticalandnon-criticalroles,anddevelopingstrategies
toimprovemanagementbenchstrength.Asoneglobaltradingcompanyexecutivesaid,Ourobjectivetoexpandtonew
marketsputspressureonourmanagementteamsbenchstrength.OurAsiangeneralmanagersdonthavetheknowledge
ofLatinAmericanmarkets,soweneedtoaggressivelysourceexperiencedmanagers.
PickingtheRightTimetoTransform
Successfulorganizationstypicallyundergohumanresourcestransformationsprojectsduringtimesofsignificantorganizational,economic,orfunctionalchangesuchas:
Businessrestructure,reorganization,oradoptionofglobalandcentralizedbusinessmodels WheretheHRorganizationneedstomakechangestoalignwithanewbusinessmodelorstrategyandsupportthewider
businesschange.
SuccessfulTransformations
TalentManagementEmpowersCorporateStrategies
LeverageaBurningPlatform
DifferentiateStrategicValueandTacticalExecution
ForgeStrategicRelationships
UpgradeTalent
BusinessOrientedResults
SmartSystemsInvestments
LeverageTrustedAdvisors
7/27/2019 HR Transhormation
14/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 14
ChangeintheHRtechnologyandsourcingagenda WhereHRtechnologyneedsupgrading,optimizing,orwholesalechangeinoutdatedorunderperformingsoftware(e.g.,ERP,globalhumanresourcessystem,orshiftby
ITtooutsourcedtechnologyprovider).
Regulatorychangeandcompliance Wherethereisaneedtomakechangestoculture,behavior,andtheunderlyinghumanresourcesprocesses,technologyanddata,policies,andcapabilities.
Corporatecostreduction WherethecostbaseofHRneedstobereduced;thiscanbeheadcountdrivenandincludethirdpartyspending(e.g.,trainingorrecruitment).
Pre/postmerger WhereHRneedstotransformHRprocess,technology,policy,data,andstructuretobetteralignwithanacquiredorto-be-acquiredbusiness.
Asthesetriggeringeventsoccur,businessleadersneedthesupportofastrategichumanresourcescapability.Human
resourcesexecutiveswhohavesuccessfullytransformedtheirteamsleveragedtheseopportunitiestocreateachange
platformthatpositionstheirorganizationsdifferently.
KnowtheDifferenceBetweenStrategicValueandTacticalExecution
Typicalhumanresourcesorganizationsdrowntheirbesttalentinarisingtideofopenjobrequisitions,beneficiary
updates,andannualperformancemanagementprocesses.Thisleavesthemwithlittletimetoactuallyperformstrategic
work.Oneofthebestpracticesoftransformedorganizationsistooffloadtacticalworkintosharedservicescenters
managedinternallyorbyoutsourcers.Managementofthesecentersissolelyfocusedonefficient,cost-effectiveservice
delivery.Freedfromtacticalburdens,strategicrelationshipmanagerscannowfocusongettingtoknowthebusinessand
theleadershipbetter.Oneseniorexecutiveexplained,Wewerereceivinghundredsofthousandsofjobapplicationseach
yearandprocessingpayrollourselvesallovertheworld.Ourpeopledidnthavethetimetogetstrategic,sowe
outsourcedbothandthisfreedourtimetodevelopspecializedtalentsourcingstrategiesandinsightintocompensation
strategies.AsshowninExhibit10,adoptingasharedservicesoroutsourcingstrategyfortacticalprocessesremainsan
importantoptionformanyorganizations.
Exhibit10:AdoptionofHumanResourcesSharedServicesorOutsourcingStrategiesbyProcess
Source:HfSResearchandtheLondonSchoolofEconomicsOutsourcingUnit,2011,N=347BuyersofOutsourcingServices
0% 20% 40% 60% 80% 100%
Payroll
BenefitsAdministraon
Recruitment/Staffing
Employeecontactcenter
Workforcedatamanagement/analycs
ManagedInhouse SharedServicecenter
Offshore/nearshorecapvecenter Currentlyoutsourcedtoaserviceprovider
7/27/2019 HR Transhormation
15/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 15
Exhibit11:Business-OrientedMetrics
ForgeStrategicRelationshipswithBusinessLeaders
Oneofthehallmarksofsuccessfultransformationistheopen-armed
acceptanceofhumanresourceswithinleadershipteams.Whereas
humanresourcesisirregularlyinvitedtopresentanupdateintypical
organizations,strategichumanresourcescapabilitiesisanimportant
partofseniorleadershipagendas.Aformerexecutivevicepresidentof
humanresourcessaid,Aswedevelopedthecapabilitytostrategically
engagewithleadersonorganizationaldevelopmentissues,they
couldntgetenoughofus.Inparticular,organizationshavefound
successbydevelopingthehumanresourcespartnerbetterbecause
therolerequiresgreateranalytic,relationship,andbusiness
understandingthanotherhumanresourcesroles.
UpgradeHumanResourcesTalenttoPerformNewRoles
Oneofthehardest,butmostcriticalchangesreportedbyexecutives
withwhomwespokewastheupgradingofinternaltalent.Acrossthe
board,executivesrecognizedthatmanylifelonghumanresources
practitionerslackedthetalenttodevelopcomplexorganizational
developmentandtalentmanagementstrategies.Manyprocess-
orientedresourcesalsolackedtheabilitytoforgedeeperrelationships
withseniorexecutives.Inordertosucceed,allorganizationsneedto
developandupgradeexistingtalent.Talentneedstohavemore
analyticalskills,theabilitytodeveloptalentmanagementandhuman
capitalstrategiestobusinessobjectives,andtheabilitytocoach
managersthroughimportantorganizationchanges.
DeployMetricsThatDriveBusinessResultsInsteadofHumanResourcesResults
Astheadagegoes,Yougetwhatyoumeasure,andtransformedhumanresourcesorganizationstrackremarkably
differentmetricsthantypicalhumanresourcesorganizations.Inpart,thisisduetothedevelopmentofnewprocesses.A
seniorexecutivesaid,Wecreatedprocessesthathelpedthemfocusonoutcomes.Successionplanning,competency
assessment,andhighpotentiallists.Weaddedmetricsthatfocusedthebusinessontheseoutcomes.Thestrongest
metricsfocusonvalueleversthatdrivebusinessoutcomes,asshowninExhibit11.
DontPrioritizeProcessandSystemsStandardizationoverBusinessAlignment
Manyorganizationslosetheplotwhenitcomestoprocessandsystemstrategyandblowthroughmillionsofdollarsin
capitaltocreatestandardprocessesordeployapplicationsthatsupporteveryregionalneed.Globalirregularityin
regulation,language,andworkforcecapabilitiesmakethisanexpensiveinvestment.Asoneseniorexecutivesaid,Pan
europayrolldidn'twork.Globalrecruitingdidn'twork.Ourlargestcompetitorspent750MtoimplementSAPononeinstancewithcountlesstemplates.I'mnotsurethatwasagoodvalue.Thatisnttosaythattransformationsdonot
standardizeandright-sizetheirtechnologyfootprint.Mostorganizationsvalueeliminatingunnecessaryredundancyor
deployingthefullcapabilityofexistingapplications.Theseeffortscansavemoneyandimproveorganizationalflexibility.
However,theimportantinvestmentsshouldbemorestrategicbecausetheydriveoutcomesthatalignwiththebusiness.
Improve Quality ofHire
Grow theBusiness
ImproveProfitability
Market Agility/Responsiveness
Increase WorkforceProductivity
Maximize Return onWorkforce Investment
Improve Leadership
Develop Employees
Compensate Efficiently
Drive WorkforceEngagement
Retain HighPerformers
Create WorkforceAlignment
Source:Source:PwC,2012
7/27/2019 HR Transhormation
16/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 16
LeverageTrustedAdvisorstoBringFocustoDisciplineandChangeManagementProcesses
Itmayseemlikeaself-aggrandizingfinding,butsuccessfulexecutiveswithwhomwespokeuniversallysaidthatthey
couldnthavemanagedahumanresourcestransformationwithoutaconsultingpartner.Theyvaluedthelargeproject
managementandtransformationdisciplineconsultantsbrought.Theyalsovaluedtheadviceandcounselexperienced
consultantscontributed.TheydidthinkingIdidnthavetimetodo,saidoneseniorhumanresourcesleader.TheyrethereworkingeverydayandthinkingaboutitevenwhenIcouldnt.Theykepttheprogrammovingforward.
CaseStudy:GlobalHumanResourcesTransformationDramaticallyImprovesHRDeliveryandCost
Issue Alargeglobalcompanysetouttotransformitshumanresources(HR)function.Thetransformationgoalsincluded
ensuringaconsistentdeliveryofHRstrategicservicesgloballyandsignificantimprovementstoHRdeliverycosts.The
companybelievedthatvaryingHRprocessesandpoliciesacrossgeographieswerecreatinginconsistentserviceand
redundantexpense.InordertoachievethereductionsincostandensureaconsistenthighlevelofHRstrategicservices,
thecompanyadoptedahybridHRoutsourcingmodelandbest-in-classHRtechnology.
Action ThecompanybeganbydesigningtheretainedservicedeliverymodeltoalignHRwiththebusinessesitsupported.
Additionally,theteamwasaskedtoidentifythemostcriticalfuturestateprocessredesignopportunitiesthatwoulddrive
consistentandefficientserviceswhilealigningtheservicestotheneedsofthebusiness.Teammembersdocumentedthe
businesscontextandHRsstrategicvision.Thisinformationformedthefuturestatedesignprinciples.Theteamalso
conductedadetailedreviewoftheactivitiesthatwereinscopeandoutofscopeforapotentialoutsourceprovider.Lastly,
theteamutilizedbenchmarkstofullyinformthedeliverymodel.TheoutcomewasaleadingpracticemacroHRservice
deliverymodelthatincludedoutsourcedadministrativeactivities,strategiccentersofexcellence,andaretainedshared
servicesfunction.Themodeloperationalizedthecompany'scostimprovementandservicedeliveryobjectives.
Thecompanynextdevelopeditsretainedorganizationtransitionplan.Theplanhadtoaligntheretainedorganization
transitiontimingandactivitieswithasimultaneoustechnologyimplementationandtransitionofadministrativeactivities
toanoutsourcedprovider.Thislevelofconcurrenttransformationrequiredintegratedplanningacrossteams.Italso
reinforcedtheneedforacomprehensiveandeffectivechangemanagementplan.Thecompanyleverageditsconsultants
globalimplementationexperienceandleadingpracticetransitionmethodologytodevelopanintegratedtransitionplan.
Impact Thetransformationprojectisexpectedtoachieveupto30percentcostsavingsfromthecurrentstate.Additionally,the
transformationoftheHRorganization,andnotjusttheadministrativetasks,allowedHRtodeliveraconsistenthigh
qualityofHRstrategicvalueandimpactacrosstheglobalorganization.ThistransformationenabledHRtodeliverservices
tothebusinesssstrategicneedsandalignitselftotheoutcomesofthebusiness.
TheBottomLine:LeadersMustCultivatetheTalentwithinHuman
ResourcestoMakeTransformationPossibleInthefaceofglobalindustrychangesthatescalateworldwidetalentmanagementdemands,humanresourcesleaders
haveamandatefortransformation.Ourresearchshowsthattheeasyworkisincorporatingvision,developingascope,
buildingaprojectplan,andobtainingmanagementpermissiontoexecuteatransformation.Thehardworkispersevering
throughthechangesinpeopleandculturethatmustoccuralongthebumpyroadtowardbuildingstrategic,business-
orientedcapability.Leadersmustcultivatethetalentwithinhumanresourcestomakethispossibleandbuildbusiness
7/27/2019 HR Transhormation
17/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 17
knowledgewithintheirteams.Thosewhotakethisroadfindthattheyaretransformed.Thosethatdontwilloftenstallor
fallshortoftheirobjectives.
Tomany,itmayseemironicthattalentmanagementandorganizationaldevelopmentwithinahumanresourcesteamis
thelimitingfactorbehinditsownsuccess.Afterall,ifhumanresourcescannotturnitscapabilityinwardlytohelpitself
first,howcanitexpecttohavethecapabilitytohelpotherssucceed?Yet,thisisthecruxofahumanresourcestransformationtheabilityofhumanresourcesleaderstohelpexecutiveslinkbusinessstrategytohumancapital
strategies,suchastalentmanagement,organizationaldesign,andperformancemanagement,requiresatransformationin
itsownhumancapitalstrategies.Basedonthesecapabilities,executiveswillopentheirdoorsandhumanresources
executiveswillleveragetheirnewlydevelopedcapabilitiestoearntherighttohaveaseatatthetable.
7/27/2019 HR Transhormation
18/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 18
AbouttheAuthors
TonyFilippone,ExecutiveVicePresident,Research
TonyFilipponeisExecutiveVicePresident,Research,atHfSResearch.HeoverseesthequalityofHfS'overallresearchagendaandpublishedresearchandworkswiththeHfSanalystteamstoensureHfS'contentisrelevantforthefirm'sbuy-
sideclients'sourcingstrategies.
Hisprimeresearchfocusisdeliveringpracticaladviceandimpartingreal-worldvendormanagementexperiencetobuy-
sideclientsandserviceprovidersonwhatreallymattershowtogovernoutsourcingprogramsinamannerthatcreates
realvaluetoallparties.HealsooverseesthecompanysresearchinthehealthcareindustryBPOverticalandthe
documentmanagementandcallcenterBPOhorizontals.
PriortojoiningHfS,TonyspentnineyearsatWellPoint,theUnitedStateslargesthealthbenefitscompany,wherehehad
multipleleadershiproles.Tonyinitiatedandledthecompanysenterprise-wideBPOgovernanceforamulti-vendor,multi-
process(callcenter,backofficeprocessing,imaging/dataentry/mailroom,andKPO)programwiththousandsofFTEs.
Tonyledstrategicsourcingincomplexindirectservicesprocurement,wherehemanagedtheselectionandenterprise-
wideimplementationofanindustryleadingprocurementapplicationwhilesimultaneouslyleadingcross-functional
sourcingteamsinoutsourcing,marketing,consulting,facilities,contingentlabor,andhumanresourcescategories.Tony
alsoledWellPointsstrategicprocurementinitiatives,includingcreatingandleadingitsstrategicsuppliermanagement
program,demandandconsumptionmanagementanalyses,andbusinessprocessbenchmarking.BeforejoiningWellPoint,
TonyspentsevenyearsconsultingwithAccentureandMarchFirst,wherehespecializedinbusinessprocesssimulation
andreengineering,strategiccustomerrelationshipmanagement,andpost-merger/acquisitionintegrationmanagement.
TonyholdsaMAinCommunicationManagementfromtheUniversityofSouthernCaliforniasAnnenbergSchoolfor
CommunicationandaBAinOrganizationalCommunication(MagnaCumLaude)fromPepperdineUniversity.Tonyisalsoa
CertifiedProfessionalinSupplyManagement(CPSM)fromtheInstituteofSupplyManagement(ISM).
TonyFilipponecanbereachedattony.filippone@hfsresearch.com.Hecanalsobefoundontwitter:@360VendorMgmt.
DianeYouden,Principal,HumanResourcesTransformation,PwC
DianeleadsPwC'sHRTransformationpracticeandhasovertwentyyearsofexperienceofworkingwithcompaniesin
improvingtheirHumanResourcesorganizationsByworkingwithherclientstodevelopandexecuteHRstrategiesthat
aligntothebusinessgoalsandobjectives,theHRorganizationsareabletooptimizetheirvaluetothebusiness.Diane's
broadrangeofexperienceandsubjectmatterknowledgecoversthemanydisciplinesofHRandenableshertohavea
holisticviewofHRandpayrolloperationsfromstrategythroughtacticalexecutionandcontinuousimprovement.
LeadingteamsofindividualswithbackgroundsinHRoperationsandtalentmanagement,Dianeworkswithorganizations
toevaluatetheiroverallHRoperatingmodelandorganizationstructureanddevelopthepathforwardtooptimizeor
right-sizetheuseoftechnologyandoutsourcinginoverallHRdelivery.
Dianehasworkedwithorganizationstodeliverlargeandsmall-scaleHRtransformationactivities,includingoverallHR
strategy,servicedeliverymodels,talentmanagementstrategies,cultureassessments,andimplementationofHRshared
services.WiththefocusonbuildingasustainableHRinfrastructurewiththerightHRcapabilitiesandcompetencies,the
HRfunctionisabletoprovidestrategicdirectionandinsightfulinformationtoenablethebusinesstomanageitstalentresources.
7/27/2019 HR Transhormation
19/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
2012,HfSResearch,Ltd|www.hfsresearch.com 19
KevinPennington,Director,HumanResourcesTransformation,PwC
KevinisanHRandbusinesstransformationexecutivewithmorethannineteenyearsofprofessionalexperienceinHR,HR
sharedservices,HRsourcing,businesstransformationandmanagementconsulting.HehasglobalHRtransformation
experienceandbringsaperspectiveofboththeclientandtheserviceprovider.Hisexperienceshavefocusedonglobal
businessstrategy,sharedservices,businesstransformation,vendorsourcingandselection,changemanagement,andprocessimprovements.
Kevinworkswithhisclientstoimprovetheirhumanresourcesorganizationandcapabilitybydevelopingand
implementingHRstrategiesandsolutionsthatdrivealignmentofHRtobusinessgoals.Kevinalsoservesastheleaderof
PwC'sHRSharedServicesandOutsourcingservices.
PhilFersht,ChiefExecutiveOfficer,HfSResearch
PhilFershtisFounderandChiefExecutiveOfficerofHfSResearch,theacclaimedanalystadvisoryorganizationcovering
globalservicesandoutsourcingstrategies.Hewasnamed"AnalystoftheYear2011bytheInstituteofIndustryAnalyst
Relations(IIAR),winningtheawardforthesecondsuccessiveyear.Thisisthemostcovetedglobalawardforindustry
analystsintechnologyandservices.HeisarenownedexpertinthefieldsofSharedServicesandBusinessProcess
Outsourcingandfrequentlydiscussescomplexindustry-specificissuesthatimpacthowenterprisesmanagetheirglobalbusinessoperations.
Anacclaimedindustryanalyst,practitioner,advisorandstrategist,FershthaslivedandworkedextensivelyinEurope,
NorthAmerica,andAsia.Duringthistime,hehasadvisedonmorethan150majoroutsourcing,sharedservicesand
offshoringengagementsandconsultsregularlywithsenioroperationsandITexecutivesontheirglobalsourcing
strategies.AtHfSResearch,Phildirectsandcontributestothefirmsresearch,consulting,andsocialmediastrategy,in
additiontooverseeingthefirm'sglobalfinanceandbusinessoperations.
Duringhiscareer,PhilFershthasworkedatAMRResearch(GartnerInc),leadingthefirmsBPOandITOpractice.
Previously,heservedasmarketleaderforDeloitteConsultingsBPOAdvisoryServices,wherehelednumerous
outsourcingandoffshoringadvisoryengagementswithFortune500enterprises.Healsoworkedforoutsourcingadvisor
EverestGroup,leadingthecompanysBPOresearchpractice.PhilbeganhiscareeratITanalystIDCacrossitsEuropean
andAsia/Pacificoperations.
FershtisafrequentauthorandspeakeronglobalsharedservicesandoutsourcingtrendsandissuesacrossIT,finance,and
HumanResources.Hewasnamedbothan"FAO"and"HROSuperstar"byFAOTodayandHROTodaymagazinesfor2005,
2006,2007,2008,2009,and2010andwasfeaturedasthecoverstoryfortheDecember2006issueofFAOTodayasone
oftheoutsourcingindustry'smostprominentadvisors.HewasalsonominatedforAdvisoroftheYearattheFAO
Summit2008.Hewasalsorecognizedin2011byGlobalizationToday(theofficialmagazineoftheInternational
AssociationofOutsourcingProfessionals)intheirfirstever"Powerhouse25"list.
Hespeaksregularlyatmanyleadingindustryconferences,whichhaveincludedTheConferenceBoard,NASSCOM,IDC
Directions,theSourcingInterestsGroup,theSharedServices&OutsourcingNetwork,andtheCouncilofSupplyChain
ManagementProfessionals.Heisalsoaregularcolumnistforseveralindustrypublications,includingGlobalServices
Media,SSON,FAOToday,andFinanceDirectorEurope.
HereceivedaBachelorofScience,withHonorsinEuropeanBusiness&Technology,fromCoventryUniversity,United
Kingdom,andaDiplmeUniversitairedeTechnologieinBusiness&TechnologyfromtheUniversityofGrenoble,France.
PhilFershtcanbereachedatphil.fersht@HfSresearch.com.Hecanalsobefoundontwitter:@pfersht.
7/27/2019 HR Transhormation
20/20
HumanResourcesTransformation:
IsItDrivingBusinessPerformance?
May2012
AboutHfSResearch
HfSResearchistheleadinganalystauthorityandknowledgecommunityfortheglobalservicesindustry.Inadditionto
researchingbusinessservicesandtechnologyservicesstrategies,HfSeducatesandfacilitatesdiscussionamongthe
worldslargestknowledgecommunityofservicesprofessionals,currentlycomprising120,000subscribers.HfSprovidesa
collaborativeplatformforthelargest,highestimpact,andmostfrequentlyvisitedprofessionalcommunityintheglobalservicesindustry,offeringrapidandinsightfulcommentaryon,analysisof,anddebateaboutenterprisesharedservices,
outsourcing,andglobaloperationsdynamics.
In2011,HfSwasawardedOutsourcing,BPOandServicesAnalystFirmoftheYearbytheInternationalInstituteofAnalyst
Relations(IIAR),thepremierbodyofanalyst-facingprofessionals,andrunner-upforoverallAnalystFirmoftheYear.Led
byrecognizedindustryexpertPhilFersht,HfSResearchdifferentiatesitselfwithitsglobalteamofexpertservicesanalysts
withrealindustryexperience,provocativeandopinionatedresearch,unrivalledmarketanalytics,andaviewoftechnology
asanenablerforbusinessprocessimprovement.Itson-demandexpertiserelationshipmodelhelpsclientsleverageHfS
knowledgeandstrategicinsightinarapid,responsiveandengagingmanner.
HfSResearchalsomanagestheHfS50SourcingExecutiveCouncil,thepremierpeerdiscussiongroupforenterprise
outsourcingandbusinessservicesexecutives.Thisby-invitation-onlyprogramfostersnetworking,debateandbest-
practicessharingamongthemostseniorsourcingexecutivesoflargeglobalenterprises.Thispowerfulforumisshapingthestrategicdirectionofthesourcingindustry,influencingotherbuyers,serviceprovidersandintermediariesacrossBPO,
ITOandsharedservicesdomains.HfShostsandfacilitatesregularmeetings,webinars,introductionsandpeernetworking
opportunitiesforHfS50members,anditsanalystscontributetotheseinteractionswithcandid,unbiasedopinionsbased
oncurrent,relevantresearch,benchmarkingdataanddeepsourcinggovernanceexpertise.
Nowinitssixthyearofpublication,HfSResearch'sacclaimedblogHorsesforSourcesiswidelyrecognizedastheleading
destinationforcollectiveinsight,researchandopendebateofsourcingindustryissuesanddevelopments.ThethrivingHfS
LinkedIncommunityincludesover17,000industryprofessionalswhoshareviewsandinformationdaily.Moreinformation
aboutHfSResearchcanbeaccessedatwww.HfSResearch.com.ThecompanycanbefollowedonTwitter
atwww.twitter.com/horses4sourcesandLinkedInbyjoiningTheBPOandOffshoringBestPracticesforum.
TolearnmoreaboutHfSResearch,[email protected].
AboutPwCPwCfirmshelporganizationsandindividualscreatethevaluetheyrelookingfor.Wereanetworkoffirmsin158
countrieswithcloseto169,000peoplewhoarecommittedtodeliveringqualityinassurance,tax,andadvisoryservices.
PwCsAdvisoryprofessionalshelporganizationsimprovebusinessperformance,respondquicklyandeffectivelytocrisis,
andextractvaluefromtransactions.Weunderstandourclientsindustriesanduniquebusinesschallenges,andlook
acrosstheentireorganizationfocusingonstrategy,structure,people,process,andtechnologytohelpclientsbuild
theirnextcompetitiveadvantagefromstrategythroughexecution.
OurAdvisory,PeopleandChangeprofessionalshelpclientsexecutetheirstrategiesthroughtheirpeopleand
organizations.Wedothisbyhelpingthemdeveloptheright:talentstrategy,organizationaldesignandoperatingmodel,
supportfunctionssuchasHR,ITandfinance;changeandcommunicationsstrategies;andleadership.
Seewww.pwc.com/us/peopleandchangeformoreinformation.
2012PricewaterhouseCoopersLLP,aDelawarelimitedliabilitypartnership.Allrightsreserved.
PwCreferstotheUSmemberfirm,andmaysometimesrefertothePwCnetwork.Eachmemberfirmisaseparatelegalentity.Pleaseseewww.pwc.com/structureforfurther
details.Thiscontentisforgeneralinformationpurposesonly,andshouldnotbeusedasasubstituteforconsultationwithprofessionaladvisors.PwCUShelpsorganizations
andindividualscreatethevaluetheyrelookingfor.WereamemberofthePwCnetworkoffirmswith169,000peopleinmorethan158countries.Werecommittedto
deliveringqualityinassurance,tax,andadvisoryservices.Telluswhatmatterstoyou,andfindoutmorebyvisitingusatwww.pwc.com/us.