01_HIHR-OM HR Strategy-Ops Deep Dive June 2015

1 Copyright © 2015 Deloitte Development LLC. All rights reserved.

High-Impact HR

Operating Model

June 2015

HR Strategy & Operations

Deep Dive


Introduction

HR Strategy &

Operations

Deep Dive

Impact and Value

• Build upon the High-Impact Operating Model POV and enhance an organization’s ability to plan

for, operationalize, and realize substantial value from its HR Strategy & Operations Portfolio

Solutions

• Provide a framework to apply the High-Impact HR Operating Model design principles to the HR

Strategy & Operations portfolio for design, delivery, and measurement of all initiatives

HR Strategy &

Operations

Deep Dive Objectives

• Supplement the High-Impact HR Operating Model with a deeper analysis of how organizations

can plan, design, deliver, and measure High-Impact HR Strategy & Operations Portfolio Solutions

• Illustrate the primary activities performed by each component of the High-Impact HR Operating

Model in delivering HR Strategy & Operations services via the three high-level process steps and

seven HR Strategy & Operations Portfolio Solutions, as well as how the Service Delivery

Channels can interact and complement each other

• Serve as the conduit between the High-Impact HR Operating Model PoV and HR Strategy &

Operations functional Work Splits

• Provide a starting point for conversations about how to operationalize the HR Strategy &

Operations Portfolio Solutions processes within the High-Impact HR Operating Model

Deloitte’s High-Impact HR Operating Model provides an innovative HR Service Delivery approach based on Deloitte’s extensive

client experience and leading practice research and applications. The model provides a new way to articulate the roles and

relationships within HR and beyond to help increase business impact with improved efficiency and effectiveness. The HR Strategy &

Operations Deep Dive expands on this work, providing pertinent details around the “what,” “why,” and “how” of HR Strategy &

Operations Service Delivery.


Critical HR Strategy & Ops Imperatives and Trends

20%Of business executives

believe HR is adequately

planning for their company’s

future talent needs240%

Of new CHROs

come from the

business, not HR228%Of business executives

believe HR is highly

efficient2

The Burning Platform for Reinventing Human Resources2

Companies are

demanding

greater HR

innovation

No improvement

in recent

HR YoY

performance

The need to

transition from

Service Provider to

Talent Enabler

The need to shift

from HR Generalists

to Business

Consultants

Gaps and opportunities for HR to drive sustainable business impact

Start with foundation

inclusive of analytics

and empowerment

culture in HR

Build structure that

optimizes business

embedded design and

delivery while

leveraging HR

specialist expertise

Mirror business

strategy

Coordinate efforts

across the

organization –

frontline decision

making and

information sharing

Leverage principles

1 – 4 to optimize

business leadership,

manager people skills

and HR performance

5Essential High-

Impact HR

Design Principles1

The High-Impact HR Strategy & Operations Framework provides the approach for exploiting

the 5 Essential High-Impact HR Design Principles, thus establishing the desired business

impact of HR Strategy & Operations Service Delivery is realized

1 Bersin by Deloitte, Deloitte Consulting LLP, Deloitte Consulting LLP - High-Impact HR: Building Organizational Performance from the Ground Up. Mallon, D.,

Shellenback, K., Bersin, J., & Kowske, B. 2014.

2 Deloitte University Press - Global Human Capital Trends 2015:: Leading in the New World of Work. 2015.

The opportunity to

simplify work by

reducing technology

and process complexity


Aligns strategy and operations to deliver HR services to the business

High-Impact HR Strategy & Operations Components

HR Strategy & Operations sets,

aligns, and enables all functional HR

plans with the enterprise business

strategies and goals to drive

business impact

Drives the “HR Strategy &

Operations Agenda” and enables

alignment, culture, and High-Impact

performance through the entire HR

Suite of Offerings1

High-Impact

HR Operating Model


Service Delivery Portfolio

The “High-Impact HR Strategy & Operations Framework” is operationalized through the seven HR

Strategy & Operations Portfolio Solutions and three high-level processes

Our disciplined and agile

methodology incorporates the

Assessment, Design, Deployment

and Measurement of solutions that

enable critical business imperatives


High-Level Process Steps

1 Deloitte - The High-Impact HR Operating Model. 2014.

Assess

Current State and

Business Needs1

Design Strategy,

Roadmaps,

and Detailed Plans2

Deploy and

Measure Impact3


High-Impact HR Strategy & Ops Service DeliveryHow S&O delivers services through the High-Impact HR Operating Model

Each delivery role plays a unique and critical part in planning, delivery, and measurement of

critical HR Strategy & Ops Portfolio Solutions that support business imperatives

• Request, obtain and analyze

Current State Enterprise HR Data

• Conduct Voice of the Customer

(VoC) Surveys and analyze data

to inform plans

• Analyze Current State HR

Technology / Systems

• Conduct Work Activity and

Detailed Process Analyses

• Conduct Current and Future

State HR Maturity Assessment

• Develop HR Current State

Assessment Summary and

Recommendations

• Identify and align with business

needs

• Share Knowledge / Leading

Practices and Develop Guiding

Principles

• Develop the HR Transformation

Vision, Charter, Business Case

and Roadmap

• Design Future State HR

Operating Model

• Align HR Roles and

Organization

• Design and Size Future State

HR Organization

• Align HR Job Profiles

• Develop Customer Experience

Strategy Materials and Tools

• Analyze Future State

Technology / Systems

• Baseline enterprise HR Metrics

• Partner with the business and

Organization Effectiveness /

Change Management (OE / CM)

teams to execute HR

Transformation Roadmap per plan

• Implement and measure

supporting OE / CM initiatives

• Measure post-deployment impact

and make adjustments as

required

• Conduct post-deployment Voice of

the Customer (VoC) Surveys,

compare to prior results, and

identify and implement any

remediations

1 Deloitte - HRT Strategy & Planning Toolkit V04. 2014.

Assess

Current State and

Business Needs1

1 Design Strategy, Roadmaps,

and Detailed Plans12 Deploy and

Measure Impact13


HR StrategyHR Reporting

& AnalyticsM&A

HR Tech

Strategies &

Systems

HR Vendor

ManagementHR PMO

HR

Governance

HR

Operational

Services

Org.

Effectiveness

& Change

Mgmt.

•Overarching

plans include HR

functional

alignment and

perpetual input

from the

business

•Confirm

business impact

is optimized by

consistently

investing in

employee

capability

development and

deploying

resources based

on business

needs

•Stays well ahead

of HR and

business trends

and incorporates

into leading

practice

execution to

deepen

relationships with

the business and

maximize impact

• Collaborate with

Business HR to

deliver data-

driven people

and

organizational

insights for

decision making1

• Leverage

multiple internal

and external

data feeds and

partner with the

business to

define workforce

requirements to

meet strategic

business needs1

• Engage with HR

PMO to measure

benefits

realization and

value creation5

• Implement HR

scorecard that

links HR KPIs to

overall

organization

metrics1

• Collectively

assess and build

M&A strategy

and plans

• Align as a unified

team and

present a

common vision

from Day 1 (post

close)3

• Support creation

of predictable

employee

experience to

retain bodies/

hearts/minds of

critical talent3

• Enable

transformative

leaders to

execute talent

engagement

strategies3

• Develop clear

career paths for

advancement in

the new

organization to

build employee

commitment/

enthusiasm3

• Integrated, near-

paperless HR

technology

landscape that

includes

enabling

technology1

• Technology is

accessible

globally to

initiate

transactions /

execute workflow

/ view reporting

data1

• Functionality

available across

multiple

platforms,

including mobile

• Enhanced HR

portal broad

functionality for

Active, Future,

and Former

Employees1

• Consistent,

broad user

experience

including social

networking

inside the

enterprise1

• Effectively

identify

beneficial

activities to

outsource1

• Manage vendors

to achieve

desired balance

of quality and

efficiency

through

collaboration

between

Communities of

Expertise and

Operational

Services1

• Incorporate

feedback from

Business HR

where vendor

services touch

HR Customers1

• Global contracts

with leading

vendors

leverage size

and scope of

services1

• Extend “project

management” to

“results

management”

with a flexible

approach that

adapts to

changing

delivery models

and outcomes

management5

• Document HR

strategic

alignment and

implementation

against

organizational

imperatives5

• Support HR

Governance with

standardized

reporting

procedures and

templates;

monitor

implementation

and progress of

HR KPIs for both

technology and

non-technology

related projects4

• Formal HR

governance

structure clearly

defines roles,

responsibilities,

and

accountabilities1

• Defined process

to assess and

establish

alignment with

HR Strategy,

System, Data

and Process

Change Control,

and Program

Management

across HR

Processes,

Policies and

Enabling Tech-

nologies1

• Structure to

support the

business

across org. and

geographical

boundaries by

using global,

regional, and

country teams

to deliver

differentiated

services2

• Partner with

COEs and

Vendors to

deliver a

seamless and

productive

experience for

customers with

HR needs2

• Partner with

Business HR to

identify

opportunities to

better support

business units,

manager / self-

service and

migrate to

centralized

functions5

• The

Organization

Effectiveness /

Change

Management

(OE / CM)

Function is

centrally

managed and

akin to a “Shared

Service” and

provides

strategic and

tactical support

on all enterprise

and LoB

initiatives

• OE / CM are

leveraged as

internal

consultants

• OE / CM staff

identify and

exploit “Moments

that Matter”

• Culture,

Employee

Engagement,

initiatives are a

strategic priority

High-Impact HR Strategy & Ops Portfolio SolutionsThe HR Maturity Model1 articulates “Market Leading” attributes, establishing the “aspirational vision” for HR Strategy & Operations and

identifies the benchmarks for achieving the highest level of business impact for all HR Strategy & Operations Portfolio Solut ions*

1 Deloitte - HR Maturity Model. 2015.

2 Deloitte - HR Shared Services: Trends in the Market V02. 2015.

3 Deloitte - High Stakes M&A: 7 Bets that Matter. 2012.

4 Deloitte - Global Organization Design Methodology. 2014.

5 Deloitte - Results Management Office (RMO) Proposal Packet. 2014.

*These are not inclusive of all attributes in the HR Maturity Model. They are intended to provide examples of those in the “Ma rket

Leading” category. There are additional attributes in the maturity categories that are not reflected above.


Deep Dives


1 Deloitte University Press - Global Human Capital Trends 2015: Leading in the New World of Work. 2015.

2 Deloitte - 2014 HCM Trend Report. Boudreau, J and Lawler, E. How HR Spends its Time. Center for Effective Organizations, University of

Southern California. 2012.

HR StrategyHR Strategy defines the target state for HR, including the mission, values, priorities, and roadmap in alignment with the

organization’s business goals. The HR Strategy cascades into each functional area and guides the development of strategic ini tiatives,

programs, policies, and roles within the HR organization, ensuring that HR is poised to deliver against the business’s future needs.

Define the HR Target State

• Define the HR mission, values, and align

the HR Strategy with the business and

employee workforce strategies

• Integrate with business strategy by

implementing people solutions that support

business-specific imperatives

• Design the HR organization to deliver

solutions to the business, with a focus on

consulting and service delivery

• Define baseline success criteria

• Develop business case for investment in

programs and services

• Own the HR workforce plan

Prioritize, Execute & Evaluate

• CoEs and Business HR brokers the right

HR strategy and solution, provides

knowledge of HR services and solutions to

the business, and establishes the effective

business execution of HR practices

• HR Operational Services delivers HR

services from centralized functions (global /

regional / country level) to support the

business and individual employees

• Measure and communicate results

• Identify and exploit CI opportunities

Develop HR Roadmap & Projects

• Identify, prioritize, and sequence the

specific HR projects that will support the

overarching HR Strategy

• Communities of Expertise create

sustainable and scalable enterprise-wide

HR programs, processes, and practices

that enable business- and people-strategy

imperatives

• Allocate budgets and define tactical

activities for project and ongoing programs

• Develop and implement measurement

strategies

Key Activities and Interactions

• The discrete business functions’ strategies and overarching business strategy should serve as the critical input for the HR Strategy, which in turn

serves as the key input for all tactical HR plans

• Invite the business to provide input into developing the HR Strategy. Also include functional stakeholders from Supply Chain, Legal, IT, Finance,

and Real Estate

• Secure commitment with the overarching HR Organization and promote collaboration / shared ownership of the HR Strategy and projects for the

respective functional areas and enterprise. Measure how employee and business performance is enabled by the HR Strategy

Business Drivers and Leading Practices

70%Of organizations indicated

the need to simplify work is

“important”172%

Of organizations report

inefficient HR operating

models241%Of executives report HR is

“weak” in preparing staff to

deliver programs aligned with

business needs1


HR Reporting & Workforce AnalyticsHR Reporting & Workforce Analytics is the process of generating business insights by combining, analyzing, and providing

stores of structured/unstructured data and external sources via predictive analytics (rather than Operational Reporting – which is

executed by Specialized Services), thus enabling business executives to make data-driven decisions.

CoE

• Develop and implement overarching HR

Analytics Strategy

• Collaborate with Business HR to deliver

data-driven people and organizational

insights for decision making

• Leverage multiple data feeds to define

workforce gaps to manage supply &

demand requirements (HR owns the

planning process and the business owns

the scenarios / plans

• Provide insight into all Talent programs

• Combine Performance Management

analytics to recruitment and retention to

provide focus on workforce planning

HR Operational Services

• Implement data integrity and data

governance protocols to establish complete,

accurate and reliable data stores

(Specialized Services)

• Support complex data changes (e.g.,

restructure, organization modeling, plant

closing, new legal entity) to facilitate HR

reporting and workforce analytics

(Specialized Services)

• Provide data to support reporting / analytics

initiatives

• Generate ad-hoc management reports to

support special projects, M&A, etc., inform

workforce reporting and analytics

Business HR

• Review workforce / business data to

diagnose and create solutions for workforce

business problems

• Leverage performance data to support the

business in identifying emerging leaders &

critical talent who meet high-success

factors, to develop them for succession

planning

• Combine data for sourcing, recruiting, and

monitoring employment brand to assess

factors such as employee engagement and

talent flight risks

• Build internal capability to interpret data to

develop actionable business insights

Delivery Channels, Key Activities and Interactions

Executive Leadership: Sets the vision, strategic direction, and HR S&O Agenda

• Cognitive Analytics is the application of machine learning, natural language processing, and an advanced analytics structure which enhance human

decisions2. Still in very early stages, but the convergence of machine and human intelligence could have wide-ranging implications for HR and the

increasing trend of “Machines as Talent”1

• 80% of HR professionals score themselves low in their ability to analyze data, which underscores the importance of and opportunity to develop and

execute HR Capabilities in these areas1

• Companies using analytics in decision-making are 2.2X more likely to outperform their competitors2


8.4%Of executives report

possessing a “strong”

HR Analytics capability169%

Of executives report a “weak”

HR capability in linking data to

workforce performance –

increase of 3% from 20141


2 Deloitte - Inside Analytics: Innovating Managed Analytics for our Clients. Lloyd, B., & Selvaraj, S. 2014.

61%Of executives report a

“weak” HR capability in

linking data to business

performance1


Mergers & AcquisitionsMergers & Acquisitions is a function that is heavily reliant on HR to establish a successful integration. Executive HR and

HR Functional Leadership must drive a shared vision / intended outcomes to minimize business disruption before, during,

and after deal close.

• The top factor for integration success is Executive Leadership Support, while involving management from both sides and developing an integration

plan are the second and third top factors for integration success, respectively1

• HR Due Diligence is a critical enabler – coaching both teams on unique regulatory/compliance requirements can confirm no HR violations occur1

• Multiple risks stemming from mismatched organizational structures and processes can impede success during integration processes1

• The integration plan should embrace Change Management initiatives, harmonizing incentives, and meshing core processes1


30%Of executives indicated

that the cultural alignment

was ineffective159%

Of executives indicated the

new operating model

redesign was effective167%

Of executives indicated

the new organizational

redesign was effective1

1 Deloitte - Integration Report 2015: Putting the pieces together. 2015.

2 Deloitte - Global M&A HR Playbook. 2014.

Overarching HR M&A Approach

• “Adopt and go” (leverage existing talent,

work processes, and facilities whenever

possible) and connect talent to promote

inter-organization collaboration

• Apply a standard philosophy to all HR

programs, systems and services

• Align processes to transition from a portfolio

of operating units to being “One-Company”,

(unless there is a holding company

structure) with shared values, goals, and

operating models

• Align the HR integration strategy aligns with

the overall deal integration strategy and

data / information alignment

• Work with CoEs to align all programs and

philosophies

HR Functions and Readiness

• Proactively manage stakeholder

expectations, especially about workforce

plans

• Articulate clear messages regularly and

consistently about what is changing and

what remains the same

• Build a positive employee experience

• Define new company culture, values,

programs, systems, and operating models

• Select and retain the best talent to meet the

current / future needs of the org.

• Be thoughtful when making employment

decisions

• Lead leaders through the integration

• Measure HR Readiness

HR PMO

• Focus on the deal’s value drivers when

making all M&A deal decisions

• Dedicate resources with appropriate

capabilities to support M&A activities

• Drive timely decision making at the

appropriate level

• Measure results, assign owners, and hold

people accountable for results

• Define end-state (and a work plan to get

there) before transition back to business-as-

usual operations

• Understand interdependencies and other

key functions' integration strategies and

timelines

• Develop/implement governance model

Global HR M&A Guiding Principles2


HR Technology Strategies & SystemsThe HR Technology Strategies & Systems landscape is undergoing a transformative shift from the legacy approaches of

multiple disparate systems that are transactional-focused to highly integrated platforms that are critical HR and business enablers.

20%Of organizations increased

their HR technology spend

in 2014133% Of companies have

10+ HR Systems5 47%Of companies will replace

HR Systems to integrate

and consolidate vendors5

HR Technology Strategy Process2

Our approach provides the means for gathering the full

spectrum of data to develop a comprehensive strategy

The HCM SaaS Market is rapidly maturing6

The transition from on-premises solutions to cloud-based platforms

is driving explosive growth in the SaaS market


• A shift in HR software from “systems of record” that automate HR practices to “work management systems” which actually improve people’s

productivity, while also embedding HR practices, is emerging3

• Lower-cost, integrated HRMS systems that replace internal legacy applications, developed entirely on cloud technology drive business impact3,

which also 1) confirms scheduled upgrades and 2) organization can spend less dollars in maintenance and more on development / delivery

• Tightly integrate HR Systems with social networks so that all HR practices can connect to each other3

• Top four criteria for acquiring new software products are 1) improved analytics and reporting, 2) improved end-user experience, 3) integration or

consolidation with other business management products, and 4) cloud-based technology4


1 Bersin by Deloitte, Deloitte Consulting LLP, Deloitte Consulting LLP - Bersin Insights: Is HR earning its keep? Erickson, R. 2015.

2 Deloitte - HR Technology Strategy Approach: Navigating the Evolving Landscape & Developing a Strategic Plan. 2014.

3 Bersin by Deloitte, Deloitte Consulting LLP, Deloitte Consulting LLP - Predictions for 2015: Redesign the Organization for a Rapidly Changing World. Bersin, J. 2015.

4 Bersin by Deloitte, Deloitte Consulting LLP, Deloitte Consulting LLP - Investments in Human Capital Management Systems 2014. 2014.

5 Bersin by Deloitte, Deloitte Consulting LLP, Deloitte Consulting LLP - HR Technology 2015: 10 Big Disruptive Trends. Bersin, J. 2015.

6 Forrester - The Forrester Wave™: SaaS HR Management Systems, Q4 2014. Hamerman, P. 2014.


HR Vendor ManagementHR Vendor Management governs the lifecycle of interactions between HR functions and organization(s) that provide services,

including unlocking contract value, ensuring optimal service levels, governing contract compliance and amendments, and

preparing for vendor exit.


• Identify and commit appropriate, dedicated resources of vendor-management professionals, who are different from sourcing or procurement

• Manage successful transitions to vendors and press for innovation, productivity and continuous improvement without relying solely on contracts

• Establish common controls, policies and procedures for all vendor management instances

• Establish service integration within multi-vendor operating models

• Conduct effective due diligence to identify types and degrees of potential risks and plan to manage / mitigate third party induced risk

• Develop, utilize, and socialized vendor scorecards / KPI's to assess and communicate vendor performance and value-add


43%Of global HR organizations

outsource call center

management451%

Of respondents plan to use

more contingent workers

over the next 3 - 5 years3Agile

Best-of-breed approach lets

organizations tailor sourcing

to their own requirements

1 Deloitte - HR Technology Strategy Approach: Navigating the Evolving Landscape & Developing a Strategic Plan . 2014.

2 Deloitte - Service Management HR Strategy. 2013.


4 Deloitte - 2014 Global Outsourcing and Insourcing Survey. 2014.

Vendor Evaluation and Selection Process Steps1

Selecting the most capable partner likely is the most critical step

in enabling a high-impact Vendor Management function.

Vendor Management Lifecycle2


HR Program Management OfficeThe HR Program Management Office is deployed to lead and support program / projects in a highly coordinated and

standardized manner. It provides support and guidance for all discrete program / project work streams that cross regions,

departments, geographies, and / or product lines and reports into HR Governance.

Key Activities and Interactions1

• Ideally, the PMO function should serve as an enterprise mechanism to identify, drive, and confirm value creation on all discrete projects

• Successful PMOs serve as an “air traffic controller” with command and control over all program activities, organizing and orchestrating multiple

initiatives, and proactively addressing issues, risks and decisions

• Selection of the right team for each workstream is critical. Workstream Leads must have deep functional knowledge, a proven ability to manage

complex work threads, and relationships / authority within the relevant region / function / delivery team

Business Drivers and Leading Practices2

MeasureDefine and analyze

metrics that are

directly linked to

business objectives

HR PMO Structures

Temporary PMO

Permanent PMO

• Manage a specific, cross

functional project or program

consisting of multiple workstreams

which contribute to an overall goal

• Disband at the end of a specific

project and hand-off remaining

pieces of work to specialists (e.g.

IT vendors, etc.)

Steering Committee

PMO

Project Teams

• Follow reporting lines up to an

executive

• Units within organizations and are

staffed with professional project

managers

• Wrap-up or hand off individual

projects but the structure remains

Executive

Oversight

PMO

ProjectProgram A

ProjectProject

Project

Project

HR PMO Objectives

Tactical Strategic

Plan Development

& Tracking

Develop project plans

and track progress

Cross Team

Coordination

Identify inter-

dependencies

facilitate inter-team

planning / issue

resolution

Risk Management

Resolve issues raised

by project team leaders

or steering committee

Organizational

Engagement

Make the case for

change across silos

Stewardship of

‘The Solution’

Continuously improve the

solution in response to

new information and

prior results

Capability Building

Develop project

management skills within

the PMO and broader

organization to enable

initiative success

Executive

Alignment

Identify

issues requiring

executive input and

coordinate issue

resolution

Resource / Budget

Management

Define project team

structure and

resourcing and

track budget

allocation and

spending

TailorThe degree of monitoring /

oversight to the criticality,

complexity, and urgency of

the program

SimplifyDocumentation,

processes and

approach should

reduce complexity

1 Monitor Deloitte, Project Management Office Toolkit, 2010

2 Deloitte - Financial Service Offering X - Program Management Office (PMO), PMO Playbook, 2009


HR GovernanceThe HR Governance framework consists of clearly defined roles, responsibilities, accountabilities, interaction points, decision rights,

escalation paths, service levels, program prioritization criteria and processes, and performance expectations to help drive business

and HR linkage, set priorities for initiatives and teams, and drive alignment of HR leadership, delivery of services, and technology.

4Balanced Scorecard inputs:

Customer, Process,

People, and FinancialEstablish

Clear metrics,

track consistently,

and continuously

improve1

HR Op Model/Governance linkage1 Decision making frameworks1Governance Model components1


• HR Governance Guiding Principles include: 1) Align to the HR Strategy, 2) empower professionals, 3) adhere to established standards,

4) understand shared accountability, 5) cooperate and partner, and 6) escalate issues when necessary1

• Implement three HR Governance Sub-Teams – 1. Strategy & Oversight (provides guidance and determines overarching strategy); 2. Operations

(confirms operational excellence and process execution adherence); 3. Relationship (manages relationships and solicits performance feedback)1,

and 4. technology and data

• Develop and execute robust processes for Escalations, Change Control, Issue and Risk Management, Performance Management, and HR

Balanced Scorecard1

• Executive Leadership, CoE, Business HR, and HR Operational Services should all have representation in HR Governance


1 Deloitte - HR Governance: HRT Strategy & Planning Toolkit. 2014.

Consultative

Leader seeks advice from group to make

decisions

Consensus

All must agree on decisions

Representative

Sub groups are formed that make

decisions

Democratic

All vote and the majority rules

RACI

Responsible, Accountable,

Consulted, Informed

RAPID

Recommend, Agree, Perform,

Input, Decide

The High-Impact HR Operating Model

provides the primary input into the HR

Governance Model and

operationalizes the HIHR OM

These building blocks enable High-

Impact HR Governance

There are six options for decision-making

strategy that HR leaders can employ

CreateSub-governance structures

that report into one overarching

and standardized governance

process and entity



HR Operational Services expands upon the traditional HR Shared Services model to include the delivery of inquiry,

transactional, and specialty services with a deep focus on customer service, operational excellence, and continuous improvement1


1 Deloitte - HR Strategy and Planning Toolkit: Critical Needs. 2014.

2 Deloitte - HR Shared Services: Trends in the Market. 2014.

• Advancing technologies are revolutionizing the opportunities for customer interaction and collaboration within HR Operational Services, the HR

organization, and the employee population as a whole - leading to increased benefits for both HR customers and the organization2

• Social technology has enhanced how employees can interact with the business, turning once linear transactions with the HR function into

collaborative immersion – creating a truly customer centric approach2

• 5 Social Collaboration integration points enable the close interaction between HR Shared Services and its customers which drive the transition to a

High-Impact HR Operational Services function – 1) Knowledge Management, 2) Community Building, 3) Support, 4) Collaboration and 5)

Information Sharing and Notifications.2Data cleanup should be recognized as the sixth integration point


Creating “Moments that Matter”2 Moving from Administrative to Operational1

There are multiple opportunities for HR Operational Services to

create “Moments that Matter” throughout the entire HR

Customer Lifecycle

CIWeave in Continuous

Improvement initiatives to

enable High-Impact HR

Operational Services

Invest In a “system of

engagement” rather

than a “system of

record”

Visibility The business is

demanding visibility

into performance

metrics


Inquiry Services

• Keys for providing a great HR Operational Services customer experience are: 1) introducing leading practices of consumer relationship

management that focus on human engagement, 2) align programs and services with business strategy and exploit on desired elements of

organizational culture, 3) cultivate customer-service capabilities that are built of employee respect and empathy, 4) deploy systems and tools that

engage customers and drive collaboration, 5) measure the return from customer-focused initiatives and “great” experiences, 6) provide efficient and

easy to consumer services to respect customer’s time, 7) build trust by providing consistent and thorough services, 8) deliver end-to-end services

with minimal handoffs or disruptions, and 9) follow up on commitments and pursue issues to resolution to build credibility2


69% Of HR Professionals indicated

the challenge of maintaining

customer-centricity is “very” or

“extremely” significant2Reengineer

Reengineer

before

automating

Maximize business impact via a “hybrid” approach2

Inquiry Services delivers HR Operational Services from centralized functions (global / regional / country level) to HR customers

and responds to inquiries related to employee / manager self-service transactions, role-based HR content and knowledge base,

search capabilities, access to HR data and reports, and access to HR applications/vendors.1



Inquiry Services Key Responsibilities1

• Respond to customer requests and provide guidance to

employees and managers through the contact center and IM /

chat support

• Consistently execute HR processes, using self-service

technology, case management, and telephony as applicable

• Provide guidance to employees and managers on self-service

transactions

• Assist employees and managers in navigating the HR portal

• Research solutions to HR customer inquiries and escalate as

needed

• Understand and be able to communicate HR policies,

processes, and procedures

• Review HR data and deliver reports to Specialized Services

• Coordinate and integrate with other functions (IT, Legal,

Finance, etc.) and external parties or vendors

FocusOn enabling high

customer engagement

with deeply interactive

experiences


Transactions delivers HR Operational Services from centralized functions (global / regional / country level) to HR customers and

assists with transactions related to general and knowledge-based HR inquiries, contact center, IM / chat support, labor arbitrage /

escalations, and case management.1

Transactions

• Payroll administration continues to be the #1 HR Process executed via Shared Services2

• Payroll / Time Administration and Call Center Management are the top HR processes outsourced2

• Improvements in technology and accessibility to knowledge management tools for all HR Operational Services roles has increased the amount

of information available to research and resolve issues faster and at lower levels2

• The Communities of Expertise (CoE) functions are realizing that in order to provide true consultative and design services to the business, there

is a need to shift more of the program administrative and high-volume repetitive delivery work to the Functional Specialists2


18% Of technology spend

was directly allocated to

improving the customer

experience2

73%Of HR professionals indicated

that the reason they are replacing

their HR software is to improve

the customer experience2

Transactions Key Responsibilities1

• Research solutions to HR customer transactional requests

• Understand and be able to communicate HR policies,

processes, and procedures

• Review HR transactional data and deliver reports to

Specialized Services

• Coordinate and integrate with other functions (IT, Legal,

Finance, etc.) and external parties (e.g., vendors)

• Provide transactional HR process and system support

• Execute compliance and regulatory reporting

Top HR Shared Services Technologies2

The top HR Shared Services Technologies are key enablers of

both customer interactions and internal processes



61%Of HR professionals

indicated that they would

be replacing their HR

software within 18 months2


Specialized Services



• Specialized Services is one of the key differentiators that enables organizations to evolve from “classic” Shared Services to HR Operational

Services within the High-Impact HR Operating Model

• A major challenge is to continually improve operations and overall service delivery by driving standardization, aggressively managing service

channels, and expanding the scope of services delivered2

• Talent is playing a growing role in HR Shared Services. Organizations are realizing the importance of HR Shared Services talent and responding

with new strategies, programs, and policies2


ShiftFrom a Federated Model

to a Coordinated Model to

maximize business impact2

Specialized Services Key Responsibilities1 Measurement increases ROI2

Specialized Services handles escalations for complex inquiries in addition to owning and delivering continuous improvement,

vendor management, operational reporting, service management, and special initiatives.1

• Offer specialty services to the business in partnership with

Business HR and CoEs (e.g., recruiting, employee relations,

leave administration, learning and development, etc.)

• Manage complex inquiry and escalation resolution

• Oversee the HR Operational Services organization to

establish seamless HR service delivery and operational

excellence

• Work on continuously improving HR service delivery

• Synthesize data prepared by Inquiry Services and

Transactions and deliver analytics to CoE

• Support HR Strategy and Operations CoE in vendor

management

• Oversee the day-to-day management of HR programs

• Facilitate change management

• Manage HR technology, reporting, and analytics

Performance Metrics dominate HR SSC’s Governance focus

InsightsAnalyze data to

discern actionable

business insightsFocus

On delivering customer-

centric outcomes with

the business, HR, and

individual employees


Key Enabler


Org. Effectiveness & Change ManagementOrganization Effectiveness & Change Management advises and supports the business to enable end-user adoption of change

through a combination of organizational transformation, project, and change management support initiatives. Additional sub-functions

include: Organization Design, Employee Engagement and Culture.

CoE

• Provide guidance and advice on large scale

projects and programs that directly impact

the effectiveness of the organization

• Work with business to design future state

organizational structures, roles, and jobs

• Play leading role in guiding change

management activities and strategies,

stakeholder management, leadership

alignment and change impact assessments

• Assist Business HR and the business in

developing Change Management Strategy

• Provide consultation as related to

organization design in coordination with

Business HR


• Create reorganization based on the request

submitted by the requestor

• Update organizations / organization

structures

• Notify required parties of changes

• Load the applicant data into the system of

record

• Generate standard reports and provide

further analysis and actionable insight for

the business

• Provide scorecards / dashboards that

accurately capture HR metrics

Business HR

• Partner with CoE to identify opportunities to

conduct organization assessment,

diagnosis, improve organizational

effectiveness, and/or provide guidance on

large scale projects and programs

• Guide business leaders to obtain

stakeholder buy-in and act as liaison

between business leaders and the OE and

Change Management Group to drive

consistent organizational design strategies

and approaches

• Coordinate with the respective parties agree

on the approved changes post consultation

with the OE and Change Management

Delivery Channels, Key Activities and Interactions

Executive Leadership: Sets the vision, strategic direction, and HR S&O Agenda

• Effective and disciplined governance of Enterprise Change Management is a critical success factor for any HR Total Rewards initiative

• Large-scale transformations should be managed as one collective program in order to align, deploy, develop, and re-deploy resources and

standardize PMO processes

• Change Analytics are becoming increasingly important as a way to link Total Rewards-related programs and initiatives to business impact


DataChange Analytics link

transformations and all

programs to impact

1 Bersin by Deloitte, Deloitte Consulting LLP, Deloitte Consulting LLP - Predictions for 2015: Redesigning the Organization for a Rapidly

Changing World. Bersin, J. 2014.

59%Of executives report

increased change

management as a top

concern1

GovernanceSupport change

initiatives with

broad governance

HR S&O “Call to Action”

and Service Delivery Capability


HR StrategyHow are you ensuring that your

overarching and HR functional

strategies are aligned?

How does your HR Strategy

support and enable business

strategy?

How are you enabling the

development and implementation

of HR best practices?

How are you enabling HR

capability across all functions to

drive business impact?

HR Reporting &

WFA

How does your HR Reporting &

Workforce Analytics capability

enable HR and the business?

How are you creating pull /

demand from your customers?

How do your professionals

identify business insights through

data analysis?

How are you using multi-scenario

predictive analytics to maximize

the business impact of HR?

M&AHow are you aligning the

integration / separation Talent

Strategy with the M&A Strategy?

How do you plan to integrate /

separate HR vendors, plans, and

strategies?

How does HR integrate with

other functional teams (i.e.

Supply Chain, Finance, IT, etc.)?

How are you measuring the

impact of the HR component of

the integration / separation?

HR Tech

Strategies &

Systems

How you integrating your various

HR technologies and systems to

enable business impact?

How are you integrating your HR

Technology Strategy with the HR

and business strategies?

How are you staying ahead of

the latest technology trends that

will enable business impact?


business impact of your HR

Technologies and Systems?

HR Vendor

Mgmt.

How are you gaining economies

of scale in your vendor

relationships?

How are you optimizing your

insourced, outsourced, and

hybrid relationships?

How are you keeping current on

the latest trends and

opportunities for improvement?


effectiveness and impact of your

vendor partners?

HR PMOHow is your HR PMO function

structured?


PMO function with the HR

Governance function?

How are you managing all HR

initiatives under one overarching

PMO structure?


effectiveness and business

impact of the HR PMO function?

HR GovernanceWhat is your overarching HR

Governance Strategy?


Governance function with the HR

PMO function?

How are you ensuring a

consistency and alignment of all

Sub-Governance functions?

How do you identify, implement

and measure continuous

improvement opportunities?

HR Operational

Services

How are your three functions

supporting the overarching

business and HR strategies?

How are you ensuring

consistency, CI and performance

across all three functions?

How is your staff creating

“Moments that Matter” with their

customers?

How are you enabling visibility on

performance and impact with HR

and the business?

Organization

Effectiveness &

Change

Management

How would employees describe

your culture?


business impact of OE / CM

initiatives?

How are you managing all large-

scale transformations through an

enterprise OE / CM function?

What is the business impact that

your OE / CM functions enable?

HR Strategy & Operations “Call to Action” To fully exploit the value-add that the HR Strategy & Operations Portfolio Solutions can enable, HR should understand how it is

currently positioned (from service delivery maturity and capability perspectives) across each discrete portfolio solution and determine

the desired direction for the future state.

How are you performing across the HR Strategy & Operations Portfolio of Solutions?


HR S&O Service Delivery – Capability Implications

1 Bersin by Deloitte, Deloitte Consulting LLP, Deloitte Consulting LLP – High-Impact HR: Building Organizational Performance from the Ground Up; Mallon, D; Shellenback, K.; Bersin, J.; & Kowske, B. 2014.

2 Deloitte University Press - Global Human Capital Trends 2015:: Leading in the New World of Work. 2015

3 Deloitte - Reskilling HR: Expanding HR’s Business Advisor Proficiencies. Benko, C., & Mazor, A. 2014.

4 Bersin by Deloitte, Deloitte Consulting LLP, Deloitte Consulting LLP - (1) The Language of Talent Management and the Smarter Workforce, Kenexa / IBM, 2013, and (2) Redesigning Work Creates a

Smarter Workforce, Kenexa / IBM, 2013 in The Role of Job-Specific Competencies in Enabling Business Execution. Sherman Garr, S. 2014.

HR’s capability to deliver business impact appears to be in serious question and should be a top priority for HR Leaders to focus

on, as only 11% of business and HR executives feel their organizations provide “excellent development” for their HR staff2.

Moving the needle on the capability continuum will not only improve HR Service Delivery, but will also improve credibility and

relationships with HR’s business customers.

• Attributes of exceptional HR functions: Develops effective leaders, proactively solves business challenges, embeds HR agenda w/in business

strategy, mitigates organizational / people risk, provides insights for business decisions, and educates the business on critical HR trends3

• Emerging capabilities needed by HR include: Identifying and growing organization-specific employee skills, working with a multi-generational

workplace, driving the right level of localization, applying social technologies, driving employee and leadership engagement, moving beyond the

four walls of HR and the organization, and incubating a culture of innovation and customer satisfaction3

• Better financial outcomes and improved Talent performance are realized when organizations effectively manage competencies4


61%Of executives report that

HR is weak in linking data

to business performance242%

Of Business / HR

Executives report HR

underperforms in Talent

Programs2

47%Of Business / HR Executives

report that HR is underinvesting

in building HR capability (citing

“weak” programming)2

HR Capability Gaps1

Reskilling HR is a top-three priority of the Top Global Talent

Priorities – as well as an area of biggest capability gap1

Perception of HR’s Capabilities2

Both HR and Business Executives concur a substantial

opportunity for improving HR Capabilities exists2


HR S&O Service Delivery – Competency Mgmt.

1 Deloitte - HR Operational Services Job Descriptions. 2014.

2 Deloitte - HRT Strategy and Planning Toolkit: High-Impact HR Communities of Expertise Job Profiles Tool. 2014.

3 Deloitte - HRT Strategy and Planning Toolkit: High-Impact HR Business HR Job Profiles Tool. 2014.

4 Deloitte - HR Roles and Role Definitions. 2014.

HR should perpetually invest in capability development in order to close the performance gaps that both the business and HR have

identified as highly problematic. Listed below are Core Competencies that professionals in all HR Service Delivery Channels should

possess, as well as specific functional competencies required to deliver High-Impact HR. Targeted proficiency levels will vary by level

and specific role-based competencies will vary by HR Service Delivery Channel, function, industry, and customers / geographies served.

Core HR Competencies1

• Strong consulting, customer service, analytical, problem-solving, planning and decision making skills

• Superior verbal and written communication skills, including: influencing, negotiations, partnering, and collaborating with multiple stakeholders

• Strong business and HR acumen that enables the translation of business requirements into HR initiatives that drive impact

• Understanding of HR and business trends in order to apply HR leading practices to resolve complex business challenges and opportunities

• Deep knowledge of HR processes and policies, project management, and continuous improvement capabilities

Executive Leadership2,3,4

• Strong ability to interface with senior

business and functional executives

and serve as strategic business

consultants in order to achieve the

desired business goals and impact

• Able to define and cascade the HR

vision, strategy and priorities

• Able to apply leadership principles to

motivate, inspire, develop and

manage the HR organization

• Strong ability to develop and maintain

key metrics and success measures,

monitor results, identify and mitigate

talent and workforce-related risks

• Strong ability to translate business

strategy to HR strategy and talent

strategy, champion change and

people initiatives, and be a cultural

steward

• Ability to seamlessly interact across

the HR Operating Model and provide

guidance and governance across

global / regional business units

• Deep experience identifying and

implementing HR leading practices

CoE2

• Strategic HR business and Human

Capital planning; HR innovation

expertise

• Ability to lead work across multiple

business units / geographies that

have diverse business objectives

• Knowledgeable about regulatory

considerations, data privacy, and

labor unions in global geographies

• Understand taxation nuances at

federal and local levels

• Experienced with partnering with

global client groups and navigating

cultural nuances

• Deep awareness and understanding

of business / HR trends and able to

develop / implement leading practices

• Deep experience in partnering with

BU HR, Executive Leadership, and

HR Operational Services to Define,

Design, and Deploy initiatives

• Strong ability to analyze data and

discern business insights

• Strong ability to develop and deepen

credibility with customers

Business HR3,4

• Go to the “Gemba” (where the work

is) in order to truly understand the

customer’s business challenges and

opportunities

• Ability to apply HR knowledge /

experience across all HR policies,

programs, processes, and functions

• Ability to establish and maintain

effective working relationships with

employees, managers and HR teams

• Strong ability to develop credibility

with business customers in order to

provide people and workforce-related

advice, strategies, and solutions

• Ability to coach and develop leaders

and managers to deliver people

management capabilities

• Ability to understand the business

and industry nuances as well as their

customers and implement HR

initiatives that drive business impact

• Partner with the business to identify

initiatives and opportunities to drive

strategic and tactical change

HR Operational Svcs.1

• Demonstrated experience in HRSS /

Operations, HR business process

improvement and redesign, and

operational management

• Superior understanding of HR

functional components and the

interaction across various areas in

HR operations

• Understands call center concepts and

can easily employ them for process

improvements

• Experience with defining and

managing Customer Service

Technology (e.g., Case Management

System, Knowledge Base System)

• Proven experience in developing and

implementing customer service

strategies

• Ability to set and drive HRSS strategy

and execution in alignment with the

vision of HR and business priorities of

the enterprise

• Demonstrated effectiveness when

dealing with dissatisfied customers

Functional HR Delivery Channel Competencies1


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© 2015 Deloitte The Netherlands

For more information please contact

Fred Sonneville

Director HR Transformation, Talent Management and

HCM Cloud solutions

[email protected]

+31 (0) 6 125 81 988

mailto:[email protected]

01_HIHR-OM HR Strategy-Ops Deep Dive June 2015

Documents

hr performance

hr generalists

hr build structure

greater hr innovation

recent hr yoy performance

sustainable business

business executives

business embedded design