Consult, Create, Transform

The Rough Guide to

A New Business Model for HR
February 2013

About Me

Jim Lefever

Director, HR & Change Management at HR2BE

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

The Rough Guide to A New Business Model for HR

Consult, Create, Transform

Where Are We Now?

The Economic Environment

Policy actions have lowered acute crisis risks in the Euro area and the US. Europes 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. Japans 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. Societ 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

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

2013 Key Focal Areas for HR

Productivity Transformation Of the HR Team Performance

Talent

Advanced Predictive Analytics

Innovation & Creativity
Source: 1. The Next Step HR Business Outlook FY13 February 2013, Australia

Technology Cloud, Apps, Tablets

The Rough Guide to A New Business Model for HR

But how is HR often perceived?

HR doesnt 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 Doesnt ask the right questions Reactive, not proactive

The Rough Guide to A New Business Model for HR

Consult, Create, Transform

So What Can We Do?

Its 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

Its time to climb the Value Chain

HR as a Business Refine Relationship & Delivery Channels Refine Services & Solutions Segment & Target Customers Adoption of New Model Fire Fighting

Value

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

HR must become a Business

Build Define & Design Deploy & Run

Partner Network Core Capability Service Portfolio

Customer Segmentation

Customer Relationship

Solution Design

Delivery Channel

Customer

Cost Of Delivery

Investment & Return

Net Benefit

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The Rough Guide to A New Business Model for HR

A Business that Flows

1. ID & Segment Customers 2. Define & Refine Needs

6. Continuously improve portfolio

3. Design Solutions to Needs

Customer

5. Manage Customer Relationship

4. Optimised Delivery

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The Rough Guide to A New Business Model for HR

With a Structure complementing the Business Flow

Build Define
Design Deploy Run
HR Portfolio
Customer Needs Analysis Workforce Planning / Strategic Resourcing HR Capabilities / Lines of Business
Comp & Bens, L&D, Recruitment

HR Business Partners

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

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The Rough Guide to A New Business Model for HR

That understands its Customers and their Needs,

Learn

Note: All figures indicative only

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The Rough Guide to A New Business Model for HR

Capable of balancing the Strategic with the Transactional

New Business WFM

Customer
GL&D
Recruit

Escalation

WH&S HR Partner

One Point of Contact1

Specialist Advice

Business

Employees
HR Help Desk

C&B ER /IR Expat Mgt

Intranet & HRIS

SPOC will change dependent upon Solution being delivered to the Customer

Solution Delivery
Note: 1. Depending on solution being delivered, either HR Business Partner or HR Project Manager

Process & Compliance

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The Rough Guide to A New Business Model for HR

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 First Contact Case Management RPO

HR Help Desk

Recruitment

Inpat/Expat Management Learning & Development Specialist Advice

Creation of specialist reward plans e.g. Sales Industrial Relations negotiations

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The Rough Guide to A New Business Model for HR

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) 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) 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?

Moving deeper into the Cloud;

Digging in with Big Data and Talent Analytics

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The Rough Guide to A New Business Model for HR

Every Business needs a Brand

And a Mission

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.

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The Rough Guide to A New Business Model for HR

And allows for Customer queries

Business Partners Strategic Influencers

T4
T3

Employee Relations Escalation/Investigation

HR Help Desk Case Management

T2

HR Help Desk First Contact

T1

Web / Intranet Self Service

T0

Manager & Employee Self Service

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The Rough Guide to A New Business Model for HR

Adopting a Consulting Focus to deliver Solutions;

Review Implementation

Solution Sign Off

Solution Development

Needs Qualification

Customer Needs

Continuous Improvement

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The Rough Guide to A New Business Model for HR

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

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The Rough Guide to A New Business Model for HR

Communicating,

Face to Face Weekly Blog Twitter Branded Messaging Business Briefings Case Studies White Papers Quarterly Town Halls Leadership Meetings Business Unit Meetings

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The Rough Guide to A New Business Model for HR

And Measuring the Right Things!

Return On People Employed Value Added per Person Average Cost per Person Cost of Turn-Over Leave Liability

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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.

Core Solutions: HR Audit HR On Demand HR Foundations HR Projects HR Strategy

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.

Contact us to find out more: Jim.Lefever@hr2be.com.au http://www.hr2be.com.au

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The Rough Guide to A New Business Model for HR

Consult, Create, Transform