Global HR Transformation

Consulting
Global HR
TransformationDefining HR TransformationHR Transformation initially focused on making HR operationsmore efficient and effective through process standardisation andtechnology. The next generation of HR Transformation is moretightly linked to corporate strategy and to creating business valuethrough HR services that address a company's most pressingstrategic challenges. That means anticipating critical workforcetrends, shaping and executing business strategy, identifying andaddressing people-related risks and regulations, enhancing work-force performance and productivity, and offering new HR servicesto help a company improve and grow.Global HR Transformation
Executive Summary
The practice of human resources management has evolved dramatically over the past
ten years. Some might even argue that those changes are sufficient to satisfy today's
business requirements. But will they be enough to meet the critical challenges of
tomorrow? We believe it's unlikely.
The First Generation of global HR Transformation began to take of workers whose values and work habits are very different fromshape in the mid-1990s, gradually evolving from HR strategy those of the existing workforce. It's our experience that manypresentations to full-blown transformation initiatives and enter- HR functions are not yet equipped to deal with these new busi-prise-wide implementations by the middle of the decade. First ness challenges. Generation HR Transformation focused on changing the existingrelationship between employees, managers, and HR. With tech- First Generation HR Transformation was focused inward: findingnology as a key enabler and process re-engineering as a mantra, ways to manage and deliver existing HR services more efficiently.this First Generation effort sought to help make employees more The Next Generation of HR Transformation will look outside theself-sufficient, whilst asking them to take more responsibility for function to help companies achieve their desired results andtheir own careers. It also sought to help remove HR from the growth in an environment where competition is global and talentmiddle of the employee/manager relationship by making man- is scarce.agers more responsible for handling their employees' HR needs. Next Generation HR Transformation should focus on developingOver the past ten years, HR Transformation has led to a major specific services that are directly linked to strategic challengesrestructuring of HR operations and processes - transforming the such as increasing revenue through new market entry or mergersway HR services are delivered. Yet, there is still much work to do. and acquisitions.
Companies today face significant HR challenges that barely We believe that Next Generation HR Transformation will requireexisted a few years ago, much less a decade ago. Global competi- a significant change from today's focus on HR operations -tion and an ageing workforce are combining to create a talent which are typically budgeted at 0.5 percent to 0.7 percent ofshortage that is expected to last well into the 21st century. revenue - to tomorrow's focus on building strategic businessCompanies are already struggling to find people with critical skills, services that can help drive share price. This shift will require HRand the problem will only become worse. As a result, companiesaround the world are turning increasingly to non-traditional to build services in new or non-traditional areas, such as work-sources of labour, such as offshore workers, retirees, Gen Yers, force planning, talent management, mergers and acquisitions,and telecommuters. global workforce security, change management, and globalmobility. The next decade will provide HR with significant oppor-HR's effectiveness will hinge on anticipating workforce trends, tunities to help make a difference to the company; it will befinding the right talent, and learning to harness the full potential interesting to see how HR steps up to the challenge.
1Global HR Transformation
What First Generation HRFirst Generation HR Transformation Transformation Set Out to AccomplishFirst Generation HR Transformation represented a fundamentalshift in HR's role, from transactions and administration to strategyand business transformation.
Specific goals included the following:n Reducing costs through shared services centres, self-service, and outsourcing. Develop un... [download for more]