Human Resources Strategy and Change: Essentials of Human Resources Transformation
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HR transformation is a concept initiated in the late 1980s with the goal to change HR from an administrative to a strategic organization with a new HR service delivery model. This model is supposed to lead to a more efficient, effective, and transparent delivery of HR services. It is often associated with the “three-legged stool model” inspired by Dave Ulrich with key components: business partner, shared services, and centers of expertise.
HR transformation is considered a holistic change of the HR function encompassing a full alignment of HR with the business strategy. The purpose and role of HR are reviewed and changed to fully support business, client, and shareholder needs. The change of HR strategy often requires a new HR operating model that is aligned with the corporate operating model as well as a change to the HR organization, creating clarity on accountabilities, structural effectiveness, and process efficiency. This often encompasses an optimized integration across the different existing HR entities. Critical capabilities needed for the new organizational setup and business alignment are determined, followed by a check of the role fit of the current HR staff and the definition of required development measures to ensure a proper implementation. Finally, to achieve a proper steering of the HR transformation process and later HR operations, transparency on HR success is created with appropriate HR KPIs. Partially also the use of technology (IT) to improve HR process efficiency and outsourcing of HR processes are considered as a key building block of HR transformation.
KeywordsHR transformation Building effective HR Strategic HR HR strategy HR shared services HR operating model HR process framework HR accountability matrix HR job family Ulrich model HR business partner HR assessment HR organization design HR role fit
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