Consult, Create, Transform

The Rough Guide to…

A New Business Model for HR

February 2013

The Rough Guide to… A New Business Model for HR 2

About Me

Jim Lefever Director, HR & Change Management at HR2BE

http://au.linkedin.com/in/jimlefever/

Consult, Create, Transform

Where Are We Now?

The Rough Guide to… A New Business Model for HR 4

The Economic Environment

• Policy actions have lowered acute crisis risks in the Euro area and the US.

• Europe’s return to recovery, after protracted contraction, is delayed.

• Macro uncertainty is impacting business plans and stability.

• US “Fiscal cliff” avoided but the lemmings are still gathered at the edge.

• Everything being equal, global growth could be stronger than projected.

• Downside risks remain significant.

• In Asia-Pacific; • China will see a cyclical bounce, though structurally, growth is slowing.

• GDP growth in India forecast at 5.5% in the current financial year. The current account deficit is

expected to be wider in third quarter on the back of slowdown in net exports of services and larger

outflows of investment income payments.

• Australian resource investment boom is likely to peak in 2013, but exports are expected to recover and

housing investment is expected to stop declining.

• Japan’s economy should improve as the global economy improves. However, in the near term, political

tensions with China will impact GDP.

• South Korea's domestic risks like declining home prices are fading and the economy is expected to grow

3.4% next year.

Sources:

1. Societé Generale; Here's What The World Will Look Like In 2013 And Beyond. Link

2. IMF; World Economic Outlook Update. Link

The Rough Guide to… A New Business Model for HR 5

Core Implications for Business

Increased investor pressure for growth and performance means that there will need

to be a greater drive on;

• Improving Productivity

• Identification and implementation of New Revenue streams

• Optimisation of Costs

• Enhancing the Customer experience

• Harnessing Innovation

• Utilisation of current & emerging Technologies

• Retention of necessary IP and Talent

The Rough Guide to… A New Business Model for HR 6

2013 Key Focal Areas for HR

Productivity

Performance

Talent

Technology –

Cloud, Apps,

Tablets Innovation &

Creativity

Advanced

Predictive

Analytics

Transformation

Of the HR Team

Source:

1. The Next Step “HR Business Outlook FY13” February 2013, Australia

The Rough Guide to… A New Business Model for HR 7

But how is HR often perceived?

• HR doesn’t understand the Business imperatives

• Is not a commercial partner

• Not engaging at the right levels in the right way

• Process police, too bureaucratic

• Low value add

• Focus only on the transactional

• Not forward looking

• Doesn’t ask the right questions

• Reactive, not proactive

Consult, Create, Transform

So What Can We Do?

The Rough Guide to… A New Business Model for HR 9

“It’s time to climb the Value Chain.

HR must become a Business.

A business that flows, with a structure complementing the business flow.

That understands its customers and their needs, capable of balancing the

strategic with the transactional. Recognising and using partners, both old

and new, where appropriate, and embracing new technologies. Every

business needs a brand, and a mission, and allows for customer queries,

adopting a consulting focus to deliver solutions; continuously innovating,

communicating and measuring the right things.”

The Rough Guide to… A New Business Model for HR 10

It’s time to climb the Value Chain

Time

Value

Refine Relationship

& Delivery Channels

Refine Services

& Solutions

Segment & Target

Customers

Adoption of

New Model

“Fire

Fighting”

HR as a

Business

The Rough Guide to… A New Business Model for HR 11

HR must become a Business

Build Define & Design Deploy & Run

Investment & Return

Core

Capability

Partner

Network

Service

Portfolio

Cost

Of Delivery

Customer

Segmentation

Solution

Design

Customer

Relationship

Delivery

Channel

Net

Benefit

Customer

The Rough Guide to… A New Business Model for HR 12

A Business that Flows

Customer

2.

Define & Refine Needs

3.

Design Solutions to

Needs

4.

Optimised Delivery

5.

Manage Customer

Relationship

6.

Continuously improve portfolio

1.

ID & Segment Customers

The Rough Guide to… A New Business Model for HR 13

Build Define Design Deploy Run

HR Portfolio HR Business Partners

Customer Needs

Analysis

Workforce Planning /

Strategic Resourcing

HR Capabilities / Lines of Business Comp & Bens, L&D, Recruitment

Solution Delivery & Change Management Cross Functional Projects, Resource Utilisation, Metrics & Reporting, Employee Engagement

Employee Relations HR Operations, IR

HR Help Desk First Contact, Case Management

With a Structure complementing the

Business Flow

The Rough Guide to… A New Business Model for HR 14

Note: All figures indicative only

That understands its Customers and their

Needs,

Learn

The Rough Guide to… A New Business Model for HR 15

Intranet & HRIS

HR Help Desk

Specialist

Advice

Escalation

Capable of balancing the Strategic with

the Transactional

Solution Delivery

SPOC will change dependent

upon Solution being delivered

to the Customer

WFM

ER

/IR

GL&D

C&B

Recruit

HR

Partner

One

Point of

Contact1

New

Business

Expat

Mgt

WH&S

Business

Process & Compliance

Employees

Customer

Note:

1. Depending on solution being delivered, either HR Business Partner or HR Project Manager

The Rough Guide to… A New Business Model for HR 16

Recognising and using Partners, both old

and new, where appropriate,

Example Outsourcing Areas;

• HR Strategy Development

• HR Projects • Succession Planning

• Talent Management

• Organisational Design

• Change Management

• HR Help Desk • First Contact

• Case Management

• Recruitment • RPO

• Inpat/Expat Management

• Learning & Development

• Specialist Advice • Creation of specialist reward plans e.g. Sales

• Industrial Relations negotiations

The Rough Guide to… A New Business Model for HR 17

And embracing new Technologies.

• Greater utilisation of Tablets & Smartphones; • Mobile Optimised (HTML5) websites

• Targeted microsites for “campaigns”

• HR Apps (e.g. ADP Mobile Solutions, BizX Mobile, Kronos Workforce Mobile)

• Moving deeper into the Cloud; • CRM & Sales Performance Management (e.g. Salesforce)

• HRIS (e.g. Oracle, SAP)

• Performance Management (e.g. SuccessFactors, Kapta)

• Learning Management Systems (e.g. Topyx, Moodle)

• Recruitment (e.g. Taleo, PageUp)

• Digging in with Big Data and Talent Analytics • Is the employment brand competitive?

• Are the right candidates being attracted?

• Which recruiting sources are delivering the best candidates?

• Are any of the teams likely to put the business at risk?

• Is the right talent on board to take the company where it needs to go?

The Rough Guide to… A New Business Model for HR 18

We act as the key supplier of HR Services to the

business, providing structured Solutions targeted at

business needs, supported by a strong Services

Portfolio and commercially focussed Core Capability.

Every Business needs a Brand

And a Mission

The Rough Guide to… A New Business Model for HR 19

Manager & Employee Self Service

And allows for Customer queries

T4

T3

T2

T1

T0

Business Partners – Strategic Influencers

Employee Relations – Escalation/Investigation

HR Help Desk – Case Management

HR Help Desk – First Contact

Web / Intranet – Self Service

The Rough Guide to… A New Business Model for HR 20

Adopting a Consulting Focus to deliver

Solutions;

Customer Needs

Needs Qualification

Solution Development

Solution Sign Off

Implementation

Review

Continuous Improvement

The Rough Guide to… A New Business Model for HR 21

Continuously Innovating,

For Example:

• HR2BE to Leaders - the Art of

Partnership

• Leaders Support Site

• HR Calendar for Leaders with Outlook

upload capability

• HR Podcasts

• Voice of Customer Survey

• Lean Six Sigma of Key Processes

H R

The Rough Guide to… A New Business Model for HR 22

Communicating,

• Face to Face

• Weekly Blog

• Twitter

• Branded Messaging

• Business Briefings

• Case Studies

• White Papers

• Quarterly “Town Halls”

• Leadership Meetings

• Business Unit Meetings

The Rough Guide to… A New Business Model for HR 23

And Measuring the Right Things!

• Return On People Employed

• Value Added per Person

• Average Cost per Person

• Cost of Turn-Over

• Leave Liability

24 The Rough Guide to… A New Business Model for HR

About Us:

• HR2BE work with small and medium

businesses to put in place really simple,

really effective and pragmatic Human

Resource strategies and actions that will

save you money, minimise your risk and

increase productivity.

• Our fully qualified and experienced team

can be engaged to deliver a simple

policy or single project, such as a new

performance management system,

through to acting as your outsourced HR

partner on a retained basis. We can help

you by drafting employment contracts,

Human Resource processes, HR training

or to put in place a full Human Resource

program of works.

Core Solutions:

• HR Audit

• HR On Demand

• HR Foundations

• HR Projects

• HR Strategy

Contact us to find out more:

Jim.Lefever@hr2be.com.au

http://www.hr2be.com.au

Consult, Create, Transform