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Business driven HRUnlock the value of HRBusiness Partners

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Reflect today• Think critically about whether your

HR Business Partner team has gotthe right attributes... Successfulbusiness partnering requires aspecial type of person

• Identify three big areas where astrong partnering relationshipwould add most value to thebusiness.

• How can you enable your BusinessPartners to deliver direct quick winbenefits to the business?

• Ask your team how they spendtheir time. How much is really spenton taking action to drive businessperformance?

This booklet provides our experiences and approach on howto make business partnering work in your organization.Deloitte has been recognized as the #1 firm for HRTransformation globally: “Deloitte leads among the HRTransformation and Technology (HRT&T) practices overall1”.We specifically have significant experience in HR BusinessPartner design and development in a variety of organizations.

1 Source: Kennedy Consulting Research & Advisory; HR Technologyand Transformation Consulting Marketplace 2010-2013; © BNA Subsidiaries, LLC. Reproduced under license.

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3Business driven HR: Unlock the value of HR Business Partners

Do any of these viewssound familiar?HR business partnering can encounter a range of challenges,like these examples reported by current HR Business Partners:

Turn to Page 14 for our response to these common challenges

“I would love more support around developing myskills, and it would be great to feel part of a HRBusiness Partner community”

“Since being given the title of HR Business Partnerthere has not really been much change to my dayto day role”

“I really want to use my HR knowledge to make areal difference to the business”

“I would like more clarity around the handoffsbetween me and other areas of HR”

“I already contribute to the business in manyways, but I feel that I could offer more value incertain areas”

“Unfortunately I am having to still focus ontransactional work – I don’t get time for much else”

“Sometimes it feels that HR and the business arecoming from different perspectives and it is hardfor me to align them”

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How do you measure up?

Lagging Business Partners

Do your Business Partners:

Retain a large proportion of theiroperational duties?

Struggle with making an impactin the business?

Find it difficult to balance thebusiness and HR agendas?

Lack clearly definedresponsibilities or handoffs withother HR areas?

Require further support withdeveloping critical business orHR skills?

Leading Business Partners

Do your Business Partners:

Spend their time on strategictasks that help to achieve thetop business priorities?

Clearly measure and articulatethe value they bring?

Effectively deliver against alignedHR and business agendas?

Have a clear and transparentpart to play in HR servicedelivery?

Get seen as part of the toptalent in the organization?

Source: Deloitte HR MaturityDiagnostic

Quick checkMany organizations have struggled with turning the theoretical concept of HRbusiness partnering into reality. Deloitte research outlines some clear indicators ofHR Business Partner maturity:

You may not yet have a HR Business Partner model in your organization, or youmay have introduced the label of ‘HR Business Partner’ but do not believe theyhave unlocked their full potential yet. Read on to find out about Deloitte’s pointof view on creating valuable HR Business Partners.

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So what is valuablebusiness partnering?

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Some characteristics of partneringrelationships

Partnership: A relationship between individuals or groups that ischaracterized by mutual cooperation and responsibility, as forthe achievement of a specified shared goal.

Accomplice, Comradeship

Support, Trust

Trusted Advisor, Challenging

Alignment, Harmony

Creativity, Vision

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Valuable business partnering cantake a range of forms and guises...


Each of these examples represent a different, but equally valuable, view of apartnering relationship. Valuable HR business partnering is about deliveringtangible outputs that support achievement of shared business goals.

It can be a difficult job...

Our extensive work with HR Business Partners in a range of organizations hasenabled us to identify some common characteristics of effective businesspartnering relationships and how they link to business value creation

We believe that an effective HR business partnering relationship is defined by the following characteristics:

Focusing on strategic issues that contribute to the growth andcompetitiveness of the business.

Taking a big picture perspective regarding the organizations priorities and goals.

Having the personal impact and credibility to influence key decision makers.

Being the diplomat and negotiator to align the agendas of the businessand the HR function.

Having a proven set of skills and a breadth of knowledge that are ofvalue to the client/customer/business.

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What is the returnon HR businesspartnering?

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Building a business case for HRbusiness partnering


HR Business Partners need to believe that they are not just partnering with the business – but arethemselves a vital part of the business. This can be achieved by linking HR Business Partner targetsdirectly to business results. Some examples are provided below.

Business outcomes HR business partner priorities Example target

Sustained revenuegrowth

• Identify talent strategies for entering new markets• Predict requirements and source critical talent to grow• Refocus the HR function on supporting high growth business units• Help the business manage mergers and acquisitions

Double size ofsenior workforcepopulation in a newmarket next year

Profit growth andcost reduction

• Manage the change process associated with cost reductioninitiatives to minimize productivity impacts

• Help business evaluate and implement outsourcing and off-shoring strategies

• Focus on reducing HR’s own operating costs

Reduceorganizationalcosts for businessunit by 5%

Working smarter:speed, flexibility,adaptability

• Align performance and rewards with speed, flexibility andadaptability

• Create communications and tools to reinforce culture• Optimise HR processes and service delivery • Source the right talent to perform

Increase averageproduct to marketspeed by 20%

Customer loyaltyand retention

• Assess employee loyalty and retention and potential impact oncustomer loyalty/retention

• Increase understanding of customer acquisition strategies andensure HR programs are supporting (e.g. incentives,performance, learning)

Increase customersatisfaction by 10%

Strategy executioncapability

• Anticipate potential leadership gaps and develop sources oftop talent

• Build ‘execution capability’ into leadership developmentprograms

Improve leadershipscorecardperformance by 10%

Deloitte can assist you to build a case that is specific for yourorganization...

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What does HRbusiness partneringlook like?

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Day in the life of a HR BusinessPartner

The diagram below provides an overview of the key HR Business Partner focus areas, interactions andcapabilities. HR Business Partners should play an account management role – consulting with theirclients to understand needs and brokering solutions using the Centers of Expertise (CoE) and the HRService Center (HRSC). They should be focused on managing client relationships, diagnosing issues,configuring specialist teams and co-ordinating projects.

Business-Facing Focus

Typical activities:

1. Is a trusted advisor on people issuesto senior leadership

2. Shapes organizational strategy usingmetrics

3. Coaches, mentors and guides linemanagers around people,engagement and performance

4. Leads complex change andtransformation programmes

Key interactions:

• Business unit leadership and line managers

HR-Facing Focus

Typical activities:

1. Shapes HR strategy and HRperformance

2. Highlights the business priorities and requirements

3. Brokers HR solutions to meetbusiness need

4. Maintains an external perspective,anticipating people trends

Key interactions:

• Centers of Expertise and HROperations

Underlying Capability Requirements

“This year, I have led the implementation of productivity initiatives which have directly generatedrevenues for my Business Unit. One initiative focused on increasing new hire productivity through a newsales training program.”

EmployeeRelations

Gets the Basics Right

HR SubjectMatter

Expertise

Use ofHR Metrics

Change Delivery

BrokeringTrustedAdvisor

Impact &Influence

Facilitation& Coaching

Leadership

CommercialAwareness

HRCapabilities

ConsultingCapabilities

BusinessCapabilities Business

AcumenCustomer

Focus

Aligning Business

& HR Strategy

ProjectDelivery

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What are other organizations doing?

A number of interesting trends have emerged that relate to the role of HR Business Partner.

Floatingresources

This practice involves creating a pool of HR BusinessPartners (or internal ‘HR Consultants’) that can bereassigned on the fly, rather than being permanentlyassigned to a particular job. This allows HR to respond tochanging business needs. Also, these resources are notaligned to a particular business unit, which helps themmaintain their objectivity.

Taking talentmanagementstrategy beyondHR

Talent management strategy is high on the CEO agenda,and seems like a natural fit for the HR function. Yet someorganizations have assigned this important responsibilityto Corporate Strategy teams or external consultancysupport. HR should view this as a warning sign that it hasnot yet established itself as a true Business Partner.

Sourcing ‘stars’from outside HR

The Wall Street Journal reports that among largecompanies that hired new CHROs in the past five years,about one third selected a non-HR executive. That’s upfrom about 10% in earlier periods. This shift may reflect aperception that some traditional HR professionals do nothave a deep understanding of business.

Strategic HR insmallerorganizations

Smaller companies are less likely to create Centers ofExpertise or Shared Service Centers, and their HR functionsare more likely to continue focusing on transactionprocessing and administration. Yet, even in these smallerorganizations, there may be opportunities for the HRfunction to focus some of its energy and resources onserving the business as a partner.

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So... How can youachieve morevaluable businesspartnering?

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Tailoring a solution to suit yourprogress and needs …

We have a bespoke solution to meet three common challenges typically encountered by HR BusinessPartner teams.

“Unfortunately I am having to still focus ontransactional work – I don’t get the opportunityto develop strategic skills“

“I already contribute to the business in manyways, but I feel that I could offer more value incertain areas“

“Since being given the title of HR Business Partnerthere has not really been much change in my day to day role“

“I would like more clarity around the handoffsbetween me and other areas of HR“

“I would love more support around developingmy skills, and it would be great to feel part of aHR Business Partner community“

“Sometimes it feels that HR and the business arecoming from different perspectives and it is hardfor me to align them“

Summary of our solution

Define the critical skills required for highperformance

Assess existing competencies, either via individualor group self assessment or line managerassessment

Implement appropriate competency developmentinitiatives which could incorporate coaching,communities and training courses

Consider redeployment or seeking of new skillsfrom outside the organization

Challenge 1. Capability Gaps


Define service delivery model with clearresponsibilities and handovers – including therelationship between the HR Business Partner and the Centers of Expertise (CoE)

Analyse and remove transactional work to otherroles or a Shared Service Center

Clearly define and communicate HR BusinessPartner

Challenge 2. Role Clarity


Understand the voice of the business and definebusiness critical tasks and priorities, involvingbusiness stakeholders throughout thetransformation

Define business relevant metrics that will track HRBusiness Partner contribution to what matters tothe business. Turn early successes into casestudies to demonstrate value

Build business understanding, confidence andpersonal brand of HR Business Partners

Challenge 3. Business Impact

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… underpinned by a set of tools and capabilities

As each organization has a unique background and set of needs we can help you find the right matchthrough the right combination of development, attraction and redeployment.

What is your existing match?

What is the required capability set for HR Business Partners in your organization?

What is most valued by the business?

How do your existing HR Business Partnersmeasure up?

Where are the biggest areas of fit, and where are the gaps and what

are their preferences?

How Deloitte can deliver:

• HR Business PartnerCompetencyFramework

• Voice of the Business approach

• CompetencyAssessment Tools

• HR MaturityFramework

Develop

Individuals with the rightattitude, aptitude and desirecan, with the right support,develop effective HR BusinessPartner skills and capabilities

Deloitte can deliver:

HR Business Partner Capability Development

Leadership Development

Coaching & Community Learning Specialists

Attract

Individuals with the requiredpre-existing capability andexperience set can, with theright recruitment mechanism, be added to the team


Best practice on HR BusinessPartner recruitment strategies

Global RecruitmentSpecialists

Redeploy

Some individuals may not havethe required skills, attitude ordesire to become effectiveBusiness Partners and might bebest suited to other roles


Redeployment services

Reorganization services

Coaching and mentoring

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… and underpinned by acomprehensive framework

We understand the steps required to achieve a perfect HR Business Partner match. Depending on theneeds of the organization, we can work with our clients across all, or a selection, of the activitiesdescribed below.

Many clients find they have already done the first three steps but require further support with developing capabilitiesand embedding performance

HR Strategy

Business

People andPerformance

Requirementsand Vision

RoleFoundations

Organisation and

Governance

Enablers

HR Governance

HR Technology

HR ServiceDelivery

HR ServiceDelivery

PolicyHarmonization

4 Assess, Develop,Attract, Redeploy

• Identify competencyframework

• Assess competencies• Learning and training• Attract and select• Transition staff• Embed performance

1 Review Requirementsand Vision

• Analyse maturity• Understand the voice

of the business• Benchmark against

good practice• Develop vision and

guiding principles

3 Validate Organisationand Governance

• Define Governanceframework

• Define metrics andmeasures

• Design organisationalprinciples, structureand sizing

2 Establish RoleFoundations

• Define detailed roleand handoffs as partof the HR servicedelivery model

• Define jobdescriptions

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Two case studies from our clients

Global consumer business organization: Role and capability definitionWith 300 HR Business Partners serving a global employee population of 60,000, thisorganization needed to clarify, standardize and develop existing HR Business Partnerteams to move them out of the traditional transactional role.

The organization completed the following steps:

1.Business interviews: First step was to get a front line perspective on business partneringdirect from business leaders and line managers.

2.Clarification of the role: The expectations and responsibilities of the role were explainedand ‘brought to life’ through the use of case studies

3.Community building: Regional communities of HR Business Partners were established(with strong leadership) as a mechanism for communication, knowledge sharing and skillbuilding.

4.Business focused capability framework: A set of desired competencies was defined basedon business need, benchmarking and HR strategy, and implemented via a competencymanagement system. All HR Business Partners were required to complete a self assessmentof their development needs, which was then validated and discussed by their line manager.

5.Learning approach: A creative learning approach was developed which focused less ontraditional classroom training and more on ongoing mentoring and structured self directedlearning in order to profoundly embed new behaviors and culture.

Global beverages company: Assessment and selectionThis organization was completing a HR transformation, which involved a shared serviceimplementation and a new HR Business Partner model. As part of this, they needed tomake sure they had on board the best HR Business Partner team available.

The organization completed the following steps:

1.Clear articulation of new roles: Communicating the details of the new roles to existingjob holders as early as possible using a variety of methods including early ‘taster’ trainingcovering core skills, as well as scenarios and examples to bring the role to life.

2.Assessment and selection: Running of an assessment and selection process to make surethe best HR Business Partners were recruited to step up into the new strategic roles.

3. Internal and external recruitment: Employees were invited to apply for the new roles. To realize savings, there was a phased rollout of the future HR organization with theintroduction of interim HR Business Partner structures first before transitioning to final endstate structures later. A round of internal recruitment was followed by external recruitmentfor any remaining positions.

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What are the success factors?

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Achieving success

There are some trends associated with organizations that haveimplemented successful HR Business Partner models.

1. Get the basics in placefirst: The HR BusinessPartner role cannot be fullyenabled, or credible, withoutthe provision of reliable HRtransactional delivery andunderlying foundations suchas standardized reporting,technology and policies.

2. Be clear about the role:Clearly describe the types ofbusiness outcomes theBusiness Partner should focuson delivering.

3. Prepare the linemanager: Facilitate themindset change of the linemanager, who initially maynot be willing or ready toaccept the Business Partnerin the new role.

4. Match the person to therole: Focus on the skills andexperience that are requiredto be credible and trusted.

5. The power of information:Providing timely andmeaningful managementmetrics/reports to guidepeople-related decisions and track results.

6. Focus on the businessrequirement: Keep thedesired business outcomevisible as you go.

7. It takes time: Focus onquick wins first but don’tpromise too much too soon.

Top success factors – Enablers to keep in mind

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How we can help you

We can provide:

Specific support to key critical tasks(e.g. capability development).

End-to-end support with full HRBusiness Partner transformation.

Best practice, benchmarking,examples and case studies providinga view of what other organizationsare doing.

A set of good practice tools andapproaches.

A review to pinpoint the key BusinessPartner opportunity areas in yourorganization.

A tailored program which will help toimprove the impact and effectivenessof your Business Partner function foryour specific organization

An experienced team of HR BusinessPartner experts.

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To learn more about how the Deloitte team can help you succeed, please contact:

Global

Margot ThomGlobal Managing DirectorHuman Capital+1 [email protected]

Jason GellerGlobal Practice LeaderHR Transformation+1 [email protected]

North America

Barbara Adachi National Practice LeaderHuman Capital+1 [email protected]

Heather StocktonNational Practice LeaderHuman Capital+1 [email protected]

Latin America, Caribbean

Vicente PicarelliRegional Practice LeaderHuman Capital+55 11 5186 [email protected]

Asia Pacific

Richard KleinertAsiaPac Regional Practice LeaderHuman Capital64 9 [email protected]

Lisa BarryNational Practice LeaderHuman Capital+61 3 9671 [email protected]

Jungle WongNational Practice LeaderHuman Capital+86 10 8520 [email protected]

Kenji HamadaNational Practice LeaderHuman Capital+81 3 4218 [email protected]

Hugo WalkinshawSouth East Asia Regional Practice LeaderHuman CapitalSingapore+65 62327 [email protected]

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Europe, Middle East, Africa

Brett WalshEMEA Regional Practice LeaderHuman Capital+44 20 7007 [email protected]

Yves Van DurmeNational Practice LeaderHuman Capital+32 2 749 59 [email protected]

David YanaNational Practice LeaderHuman Capital+33 1 58 37 96 [email protected]

Dr. Udo BohdalNational Practice LeaderHuman Capital+49 69 97137 [email protected]

Lorenzo ManganiniNational Practice LeaderHuman Capital+39 02 83 32 32 [email protected]

Fred SonnevilleNational Practice LeaderHuman Capital+31 88 28 84 [email protected]

Gert De BeerNational Practice Leader Human Capital+27 11 806 [email protected]

Enrique de la VillaNational Practice LeaderHuman Capital+ 34 9151 45000 [email protected]

Sarah KaneNational Practice LeaderHuman Capital+41 44 421 [email protected]

David ParryNational Practice Leader Human Capital+44 20 7007 2988 [email protected]

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