4b. High Impact HR Operating Model POV PDF
4b. High Impact HR Operating Model POV PDF
The High-Impact
Subheading HR
Open Sans
Operating
Light up to two Model
lines of text
Familiar.
Subtitle Sustainable. Revolutionary.
or date
The High-Impact HR Operating Model
Disruption is simultaneously impacting your HR leaders today and into the future face a new set of
business and your workforce. Organizations potential challenges, including a mandate to: drive the
face increasing demands from customers, workforce and talent agenda to attract the best in the Experience is key
constant productivity pressure from market where the demographic upheavals have made A large, global financial services company
competitors, and threats from unexpected the workforce younger, older, and diverse; foster an
recognized the power of interactions with
entrants to their markets. The shifting engaging culture and drive enterprise performance;
its external customers and examined
geopolitical landscape, digitization of our daily meet the demand for world-class service while digital
the interactions with the workforce. They
lives, and changing workforce demographics technology is disrupting business models and radically
discovered a defined set of moments
changing the workplace; build and support empowered
and demands add further disruptive forces. that matter for the employee. With an
teams; create a deep leadership pipeline; and, harness
Enterprises must quickly anticipate, adapt, acute focus on improving the value HR
data for analytically based workforce decisions.
maneuver, make decisions, and shift course in delivers, the organization targeted specific
an agile way more than ever before to brave the improvements to deliver true value at those
Organizations need HR to show up differently. Efficient
never-ending disruption. and effective delivery of core services are givens. HR moments and experiences that matter.
showing up differently is about setting and achieving
HR is the only function with the purview and ability to the workforce and talent agenda, delivering the
effectively turn those disruptions into opportunity for business strategy, driving workforce performance and
sustainable business performance. Deloittes Global engagement, stewarding the culture, and enhancing
Human Capital Trends research shows that HRs impact the experience for the enterprises people. When HR
has been trending upward over the past few years with shows up differently and takes the lead, they are able
significant progress in the areas of employee engagement, to navigate the disruptions happening in both the
culture, workplace analytics, and the adoption of cloud- workforce and the business.
based HR technology. While HR teams still face daunting
challengesparticularly in experiences across design
thinking, digital, behavioral economics, and real-time
performance feedbacka new generation of inspired HR
leaders is entering the profession, and the progress is real. 2
Showing up differently relies on HR having the right Achieving High-Impact HR requires a shift to a new
operating model, capabilities, and digital enablement. level of maturity. Organizations must move further
Organizations are advancing from traditional ways of from rationalization to optimization of the entire HR
operating HR toward the High-Impact HR Operating function and the experience of the workforce. HR, just
Model Deloitte introduced a few years ago. Based on as the business, cannot sit still or aspire to old models.
extensive research and practical experience gained So, weve stepped back to reflect on the delivery of HR
through collaboration with enterprises around the world again. This time, rather than reflecting upon traditional
and across industries, the model is dynamic and must HR models, we have evaluated the High-Impact HR
be fit for purpose to align with an enterprises culture, Operating Model and refined it with knowledge and
organizational ways of working, and the businesss experience gained since its introduction. While the
unique strategy and priorities. While progress for many Model was developed following five years of research
organizations is excellent, a distance remains to fully and hundreds of client engagements, the last few years
realize High-Impact HR. have provided further insights about how to bring this
new way of operating HR to life in a fit for purpose way.
Since launching the High-Impact HR Operating Model,
experience and further research enable evolution of the
Model and the approaches to realize a tailored version
that fits an organization.
3
What does high-impact
mean in HR?
Consider the challenges a modern-day HR operation
typically faces, before or after transforming:
A mandate to drive the workforce and talent
agenda, creating a compelling experience that
attracts the right people in a competitive market
and drives enterprise productivity
The need to drive alignment, an engaging
culture, and global performance
The opportunity to provide world-class customer
service through better use of digital technology
and analytical capabilities
The need to support and build deep, global
leadership pipelinesand networks of teams
whose idea of being led is not merely to follow
4
What does high-impact mean in HR?
Research by Bersin by Deloitte, Deloitte Consulting The High-Impact HR Operating Model is a blueprint
LLP, shows that when HR operates with High-Impact, for an HR function built on adaptability, innovation,
the business excels.* As seen in Figure 1, companies and expertise. It walks the walk by helping HR move
that implement a High-Impact HR model are far more from a function of service delivery to a driver of
able to market changes, accelerate introduction of strategic workforce, talent, and business outcomes.
new products or services, operate efficiently, and win Just as important, the blueprint is adaptable. Instead
over their competition. of a one size fits all mandate, it offers foundational
core philosophies, key shifts, and customized
elements that HR organizations can make their own.
Figure 1.*
Adapts to market Creates new Improves processes Operates Wins over the Responds to
changes faster products/services to maximize efficiency efficiently/keeps competition in customer needs
more quickly costs lower the market more quickly
*High-Impact HR: Building Organizational Performance from the Ground Up, Bersin by Deloitte, Deloitte Consulting LLP
5
Core Philosophies of the High-Impact
HR Operating Model
3 Workforce Insights,
derived through digital solutions
4 Fluid interaction among the
HR components, continues to
and strengthened analytical be key to the Models strength,
capabilities of HR, inform the breaking silos created
business strategy by traditional HR operating
models and ways of working
6
High-Impact HR Operating Model Core Elements
What does HRs new way of working look Those familiar with the High-Impact HR Operating
like? The High-Impact HR Operating Model Model will recognize this refreshed view still
empowers business leaders, prospective and incorporates the open architecture that promotes
current employees, and HR professionals in a movement, adaptability, responsiveness, flexibility,
Looking outside in
number of ways: collaboration, and openness for the variety of additional
functions and roles that can play important parts The CHRO of a global automotive
Aligns the work an organization needs with the
in an organizations way of operating HR. organization recently commented,
capabilities to deliver it most effectively
We really need to move to Communities
Incorporates digital as an integral part of the
Also familiar are the main components, with HR of Expertise. For too long, we have
operating model to empower and connect with
Customers at the center; Business HR, HR Operational worked in isolation, building solutions
workforce
Services, Communities of Expertise, and External not relevant to our customers. I need
Emphasizes coordination within and beyond HR Networks & Partners as the primary HR roles; and to push my HR team to go outside of
Reshapes the roles and responsibilities within joint HR and Business Leaders forming the Executive HR and pull back leading research.
HR and the ways HR interacts inside and beyond Leadership providing governance to the model.
the enterprises walls
Establishes HRs critical new role in fostering The updated Model reflects important enhancements:
connections outside the organizationwith The exponentially rising importance and
business customers and external networks ease of technology to create a consumer-like
to nurture the employer brand and translate Digital Workplace and drive Workforce Insights
the outside world through a talent lens that based upon the massive amount of data
influences the enterprises people strategy increasingly available
The need to optimize HRs connection to External
Networks & Partners, given the critical roles of
service provider partners, cloud platform solution
partners, crowd-sourcing, and social networks
7
Explore each part of the High-Impact
HR Operating Model for insights that distinguish
High-Impact HR Operating Model Core Elements
this advanced way of working for HR:
1 HR Customers remain at the center and with a bigger voice than
ever, driving a critical focus on workforce experience trategies & Ente
Talent S rpri
s & se
2 Digital Workplace empowers and connects the workforce es Cu
sin Executive
ltu
Bu Leadership
Visions, Strategy, Priorities
re
3 Workforce Insights are used to inform the business strategy HR Leadership Team Senior Business Leaders
9
4 The models strength is fluid interactions Governance
Pol
External Services
Networks &
ic i e
HR community beyond its walls and add more Partners
W orkforce
3
sa
credibility to workforce solutions
s
In sig hts
ric
4
n d
et
Pr
M
9 HR Leadership partners with the business to set the HR vision,
oc
se
es
s
culture and priorities that deliver the business strategy
8
Shifts to High-Impact HR
The ability to effectively achieve the desired business outcomes,
including faster adaptability to market changes, quicker product and
services creation, and winning over the competition, requires HR to
accomplish the 4Cs of High-Impact HR:
9
Shifts to High-Impact HR
Major shifts are needed to move from current ways of working to High-Impact HR, arranged as From To within the 4Cs frame:work
10
10
Making High-Impact Fit for Purpose
Of course, clear alignment of an enterprises business
strategy with its people and HR strategies is imperative
to the success of any HR function. Fit for purpose
The Senior Vice President of HR
The High-Impact HR Operating Model is a plan, not a
strategy and operations for a large
prescription. The model provides a starting point that,
technology company noted, The one
when combined with HR Operating Model Strategic
size fits all has never worked for us.
Design Choices, enables an enterprise to arrive at a
fit for purpose way of operating HR. These choices
We are a unique company with diverse
are organized in three categories: Business Strategy, products, services, and customer
Business Environment, and People & HR Strategy. groups. We needed an HR operating
model that could wrap around our
Making HR Operating Model Strategic Design Choices different lines of business, yet drive
that allow creating a fit for purpose High-Impact HR synergy and remain essentially one HR
Operating Model relies on the following: Business function.
Strategy, Business Environment, and People & HR
Strategy.
11
Making High-Impact Fit for Purpose
Business Strategy
HR Operating Model
Markets
Strategic Design Choices
Growth Plans
HR Scope
Products/Services People and HR Strategy
Governance
Customer Segments
Ways of Working Values Employee Experience
Capabilities
Employer Brand HR Service Differentiation
Culture
These strategic design choices provide a framework to steer the creation of meaningful and specific
Structure guiding principles for detailed design of a fit for purpose High-Impact HR Operating Model.
Figure 2.
12
HR Operating Model Strategic Design Choices
Making High-Impact Fit for Purpose
1 HR Scope HR Owned Experience Full End-to-End Experience
HR takes on accountability primarily for HR HR has accountability for a HR and non-HR process
process steps within the employee experience steps within the employee experience
Each category of Strategic Design
2 Governance Controlled Entrepreneurial
Choices has a pointed impact on the Robust governance, decisions driven Policies are guidance with local groups making
HR operating model design to arrive from a central governing group decisions and adapting programs
at one that truly fits an enterprises
3 Employee Standardized Personalized
purpose, as shown in Figure 3. As well, Experience Employee experience similar regardless Employee experience differs and is
the framework helps with continued of customer segment tailored by customer segment
7 HR Enabling Extended
Technology Provide the tools to enable employee and manager Provide the tools to drive employee and
access to information and transactions with HR manager ownership for HR data, transactions
involvement in approvals with limited HR involvement in approvals
13
How to get there
Designing and implementing the Model requires of the list. High-Impact HR means the
effective application of a customer-centric, design HR organization is embedded within the
thinking approach in iterative stages. By using a set business, advising and innovating along Seeing the whole picture
of well-established tools and frameworks developed with business leaders. A senior HR executive recently observed
and applied across many complex enterprises
Digitize the Workplace. The workforce that her companys HR team focused
around the globe, an HR organization can guide
demands ease of experience at work in the heavily on implementing technology
and accelerate its journey to achieving the High-
same way theyve come to expect as consumers. and centralizing administration. But it
Impact HR Operating Model.
The mind-set of HR technology as self-service missed the complexity and importance
now feels ancient. Rather, in High-Impact HR, of enabling (1) the HR resources that are
Organizations aiming for High-Impact HR should
digital access to information and actions close to and working on the business
consider these lessons:
should be embedded as part of the integrated
and (2) communities of expertiseboth
Start with the HR Customer. Applying a design service experience.
thinking approach positions HR to develop an
essential to making the shift toward
Own the Data. HR can be better equipped delivering significantly greater business
operating model and the enabling processes
than ever with meaningful workforce data impact.
and technologies to meet the real needs of
and must shift from reporting to owning the
the business and the customers of HRthe
data by delivering tangible workforce insights
workforce. Understanding the workforce
and guidance to the business.
personas specific to an enterprise enables well-
grounded choices about HRs ways of working Get Beyond Structure. High-Impact HR is about
to fit the enterprises needs. new ways of working. Organizational design for
HR is an output of a well-designed operating
Evolve HR Capabilities. Customer centricity,
model. By defining a fit for purpose High-Impact
digital readiness, adaptability, agility, strategic
HR Operating Model, the organization structure
consulting, and analytical acumen are at the top
should become clear.
14
How do we know we made it?
The pace of business and workforce disruption CHROs are regulars on analyst calls, describing
continues to accelerate even in the few years since linkage of people programs to business results
we first introduced the High-Impact HR Operating
Business HR and HR Operational Services
Model. HR executives and their teams face
professionals also identify as members
unparalleled challenges that involve a significant
of an HR Community of Expertise
shift in the way HR operates and demand a model
that fits an enterprise. HR is providing the business with workforce
insights that predict workforce patterns and
Plans, models, initiatives, and formal transformations behaviors to drive business performance
add up to nothing if the business outcomes dont HR has created senior leadership emphasis
change and if the business performance is not on the employee experience that places the
sustained. The High-Impact HR Operating Model candidate, employee, contingent workers, and
is meant as a cure for that disconnecta new kind alumni at the center of focus when designing HR
of transformation that reaches all the way to the processes and solutions
bottom line.
When fit for purpose, the High-Impact HR Operating
What are some signs its working? We will know we Model provides organizations the foundation to
have made it to High-Impact HR when drive critically important business outcomes.
HR leaders engage with business customers and
shape strategies with the knowledge gained Are you ready to make the choices for your
enterprise?
Cross-functional and connected HR teams of
resources deploy to address focused business
imperatives and challenges
15
High-Impact HR
Operating Model insights
16
High-Impact HR Operating Model insights
17
Power of workforce insights
Through our workforce analytics
Workforce Insights include data team, observed the VP of Talent of
about the workforce and the businessboth a global manufacturing company,
internal and external to the enterprisealong
we were able to collect internal and
with metrics and measurement tools that provide
external macroeconomic data based on
people-related information linked to overall
predetermined attrition drivers, analyze
business performance. Workforce Insights
the data, and develop insights to
generate meaningful information that enhance HRs
credibility and enables HR to lead the business in
determine the attributes of attrition. We
decision making. By linking HR and business data, then developed action plans to address
from the past, present and future, organizations sales force individuals and groups at
can predict and improve workforce performance highest risk for leaving the organization.
by uncovering issues, influencing organizational
decisions, and driving continuous improvement.
Back to model
18
High-Impact HR Operating Model insights
19
High-Impact HR Operating Model insights
20
High-Impact HR Operating Model insights
fits-all approaches in the name of efficiency. Yet, Creating capacity and credibility
effective High-Impact HR requires flexibility to meet with HR Operational Services
the needs of the business. A broader scope under
Recognizing a need to improve employee
HR Operational Servicesdelivered through the
relations capabilities, a health care
combination of internal and external sources
organization decided to shift day-to-day
allows delivery of end-to-end services in a function
employee relations services and complex
and provides greater ability to meet the business
investigations into a specialized team. A
HR Operational Services needs, while still achieving efficiency.
combination of professionals who address
enable operating excellence by delivering the
end-to-end experience efficiently and effectively For example, traditional HR shared services might basic inquiries by following written guides
across HR processes, with an emphasis on inquiry include administering an Applicant Tracking System alongside employee relations specialists can
management, transactions, and specialized and generating offer letters as the only activities drive consistency and enable an end-to-end
functional services. The addition of knowledge- within the wide arena of Talent Acquisition. In the employee relations capability to serve all
based and specialized functional services to the High-Impact HR Operating Model, HR Operational groups across the organization.
traditional scope of a shared services model Services delivers broader recruitment capabilities
expands the opportunity for Business HR and with specialist knowledge that might include
Communities of Expertise to focus on delivering sourcing, screening, interview scheduling, selection
valuable impact to help drive business growth support, and pre-hire activities. In this way,
and performance. recruiters as part of CoEs, can play up and focus on
true workforce planning, managing the employer
Traditional HR shared services scope, limited to brand, growing the talent pipeline, and collaborating
transactions and very basic administration, can with hiring managers in talent selection.
hold the entirety of HR capability back. Often this
traditional scope approach leads to rigid, one-size- Back to model
21
High-Impact HR Operating Model insights
External Customers: HRs understanding of require adopting standard processes and tools,
the needs of their enterprises end customers is in addition to the increasing use of outsourcing
critical and should directly influence the talent providers to deliver specialty services to an
an organization hires and the top areas of focus HR organization, elevate the need to position
for employee and leader development. The external vendors as partners, embedded within
business achieves significant value when HR truly the HR operating model.
understands the priorities of external customers
External Networks and translates these into talent strategies and Vendor management, an often underdeveloped
solutions. Traditionally, HR has relied mostly upon
and Partners are embedded in the Model, business leaders to provide insights to external
skill within HR, has become a critical factor in
successfully delivering HR services. To identify the
emphasizing the importance of HR accessing outside
customer needs. However, HR executives are appropriate sourcing mix and manage vendors
sources to get the work done right.
finding that participating in customer meetings, to achieve the desired balance of quality and
sales pursuits, and challenging customer efficiency, Communities of Expertise collaborate
External networks are critical to High-Impact HR.
situations brings positive value to both the with HR Operational Services, influenced by
Social networks play an important role in defining
business and its customers. As a result, unlike feedback from Business HR where vendor
an enterprises reputation, greatly helpingor
traditional HR delivery models, High-Impact services touch HR customers.
hinderingtalent acquisition and retention. HR
HR recognizes the importance of external
should serve as the steward of the employer brand,
business customers within the model so as to
taking active steps to promote the brand and Back to model
properly consider the right HR interactions and
manage its presence across the many networks
engagement with external customers.
that extend outside organizational boundaries.
External Vendors: Traditionally, vendors have
External Partners include both customers
been viewed as service or solution providers that
of the enterprise and vendors that provide
are somehow off to the side of an organizations
both tactical and strategic products, services,
HR operating model. The rise of cloud-based
and technologies. Each plays a role of growing
human capital management platforms that
prominence in delivering end-to-end HR services.
22
High-Impact HR Operating Model insights
Back to model
*High-Impact HR: Building Organizational Performance from the Ground Up, Bersin by Deloitte, Deloitte Consulting LLP 23
Authors
Arthur H. Mazor Erica Volini Gary Johnsen
Global HR Service Delivery Leader US Human Capital Leader Specialist Leader
Deloitte Consulting LLP Deloitte Consulting LLP Deloitte Consulting LLP
[email protected] [email protected] [email protected]
Richard Coombes
UK HR Transformation Leader
Deloitte MCS Limited
[email protected]
Lead contributors
The authors would like to thank the following individuals for their contributions to this report:
Josh Bersin, Justin Clark, Ken Kunkleman, Bryanna Ransom, Amy Sobey, and Sofia Whelan
24
Human Capital Leadership
Global Human Capital Leader Strategic Initiative Leaders
Brett Walsh Jeff Schwartz Heather Stockton
Global HC Leader Marketing, Eminence & Brand Innovation-Future of Work
[email protected] [email protected] [email protected]
25
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK
private company limited by guarantee (DTTL), its network of member
firms, and their related entities. DTTL and each of its member firms
are legally separate and independent entities. DTTL (also referred to as
Deloitte Global) does not provide services to clients. In the United States,
Deloitte refers to one or more of the US member firms of DTTL, their
related entities that operate using the Deloitte name in the United States
and their respective affiliates. Certain services may not be available to
attest clients under the rules and regulations of public accounting. Please
see www.deloitte.com/about to learn more about our global network of
member firms.