Human Resources Transformation

The Digitization Impact

Manish M Misra

The Journey So Far

HR Transformation 1.0

HR Operations

(75%)

HR Transformation

Organization

Effectiveness

(20%)

Business

Strategy (5%)

HR Operations

(10%)

Current HR Service

Profile

Targeted Future HR

Service Profile

INTEGRATION

TECHNOLOGY

PR

OC

ES

SE

S

PE

OP

LE

HR

Strategic Partner Change Agent

Administrative Expert Employee Champion

Design and implement HR

programs that align / fit with the

business vision

Active Role in setting

strategic direction

Create cross-functional

collaboration & organization

readiness to accomplish change

initiative & performance results

Effective Transformation

& Change

Continue improvement of the HR

Process to Optimize operational

efficiencies & employee self- service

Process Optimization

& Efficiency

Develop employee competences

with continuous skills & knowledge

management; foster achievement /

performance recognition programs

Motivated &

Competent PersonnelBusiness Strategy

(50%)

Organization

Effectiveness

(40%)

HR Transformation 1.0

Business Partners Shared Services Center of Expertise

Establish relationships with customers

– line /business unites

Contribute to business unit plans

Develop organizational capabilities

Implement HR practices

Represent center HR

Log needs and coordinate HR services

Front Office

Deliver HR services

Manage routine processes effectively

and efficiently

Often using a single HRIS, intranets to

provide basic information and call

centres for specific queries

May be outsourced

Back Office

Create HR frameworks

Develop and introduce strategic HR

initiatives

Specialized areas such as

compensation and benefits, employee

relations, learning and development,

talent management, OD, staffing,

diversity, and workforce planning

Often depend on the business partners

to roll out programs to the business

Human Resources Has Made Significant Progress In Transforming

Itself…. But With What Results….

The Report Card

CEO view

58% of CEO’s state lack of business acumen is biggest issue

with HR (Hewitt Associates)

Line Manager view

58% of the line manager’s believe HR lacks the capability to

develop strategies aligned with business objectives (McKinsey)

Global Study

HR is not making the grade as companies move away from HR as

people administration, to a focus on people performance (Deloitte

2014)

87% of global workers are not engaged in their jobs (Gallup 2013)

34%

Of CEOs felt that HR was

well-prepared to capitalize

on transformational trends

CEOs feel their HR isn’t ready for the task ahead

when asked how well- prepared the major

functions in their business were to capitalize on

transformational trends, only 34% felt their HR

was well- prepared end 9% said if was not

prepared at all.

HR Has Much To ProveOnly

The Report Card

First Generation HR Transformation Report Card

Reduce Cost B

Streamline technology B

Manage People Globally C

Shift HR focus from administration to

strategy D

Human Resources Function Is Struggling To

Meet The Challenges Of Today’s Business

The New Business Realities….

This Turbulent Environment Has A Name…..

An “Adaptive Response” is the only Way in VUCA World

For Volatility

Frequent and sudden

changes

For Uncertainty

Unpredictable patterns

of change

For Complexity

Complex problems and

opportunities co-exist

For Ambiguity

Contradictions and

confusion – unsettling

scenarios.

V U C A

The VUCA Impact

States of Organization

Tightly Coupled

Physical coupling of people and

process

Hybrid

Combination of physical and virtual

coupling of people and process

Loosely Coupled

Virtual coupling of people and process

INFORMATION

Hierarchy To Wirearchy

Technology is everywhere & ……..

Learning to scale, reason with purpose and interact with human naturally

Social, Mobile, Analytics &

Cloud

Creating new standards of

engagement, collaboration and

networking

Artificial Intelligence,

Cognitive & Robotics

Massive impact on workflow

automation and mass personalization

Big Data and Automation

Ability to process multivariable

algorithms resulting in accurate

predictability, forecasting and

scenario analysis

Technology Impact… Business Models will change @ particular

information levels just like natural element changes its form at melting point.

In Nature In Business

Platinum 3,220⁰ Energy

Iron 2,800⁰ Utility

Nickel 2,651⁰ Manufacturing

Aluminum 1,221⁰ Travel

Zinc 787⁰ Healthcare

Lead 621⁰ Life Science

Tin 449⁰ Retail Banking

Sodium 208⁰ Insurance

Water 32⁰ News

Bromine 19⁰ Book Retailing

Mercury -38⁰ Movie Rentals

Chlorine -150⁰ Personal Communications

Nitrogen -346⁰ Maps

Hydrogen -434⁰ Research / Encyclopedia

Helium -458⁰ Classified Ads

Ro

om

Te

mp

era

ture

To

day’s

In

form

ati

on

Le

ve

l

F

THE FIRST

INDUSTRIAL AGEProvided the platform for

the Industrial Corporate

Model

STEAM

POWER

STEEL

ELECTRICITY

THE NEXT

INDUSTRIAL AGELaying foundations of the

Knowledge Corporate

Model

SOCIAL,

MOBILE, CLOUD,

ANALYTICS

AI, COGNITIVE,

ROBOTICS

BIG DATA,

AUTOMATION

The New Workforce…..

Man (Women) & Machine Collaborating will the New Workforce

Multi Generational

Always On the Move & Mobile Workforce

Multi Cultural Robotics Millennials

Millennial Expectations Are Changing Work

Workforce Impact

Millennials make more than 60% of the workforce

Germany, Japan, and even China and US will soon have

negative population growth.

41% workforce in US is Contingent Workforce, growing @1%

every year.

Long Term is less

than 2 yrs, Normal is

7 months

Job Hopping and Career

Shifts are new normal

Learning is the key to

retention

Their “ Team Mates ”are

the most important

people at work

Expect Feedback

weekly and

progression

annually

The Reality

The Reality…

IndustryWidget

WinnersDigital Winners Tipping Points

Book Retailing Borders AmazonBorders Bankrupt 2011: Amazon market Cap, $99

Billion.

Movie Rentals Blockbuster Netflix

Blockbuster bankrupt 2011: Netflix Streaming Volume

Exceed Rentals in 2012 and Constitutes one- quarter

of U.S, Internet Traffic.

Mobile Phone Nokia Apple, Google Nokia Market share at 1997 level, 3% of peak market

cap, $215 Billion.

Online

Communication

Platform

AOL FacebookAOL value 95% from peak: Facebook Market Cap,

$48 Billion.

Photographs Kodak Flicker, Shutterfly Kodak Files for Bankruptcy in early 2012

Maps Rand McNallyTomTom,Garmin,

Google Garmen Market Cap, $7 Billion.

The Reality…

In 2012, there were more than 10 times as many photographs taken than in

1992 and yet Kodak filed for bankruptcy

More news is being generated on a daily basis than ever and yet the Los

Angeles Times is bankrupt, The New York Times debt sits at junk status

Book Sales increased 27% in 2011 in the US alone and yet BORDERS

BOOKS Collapsed!

Encyclopedia Britannica Wikipedia

Year founded 1768 2001

Articles 65,000 4,086,999*

Languages 1 271

Words 40 million 2 billion

Updated Annually Real-time

Mistakes per article 2.92 3.86

Cost $729 Free

But Will These Jobs Really Go Away?

Of today’s jobs are predicated to be gone in 10

years ( Oxford Research Institute )

No, They Simply Change.

53%

Up to

The Prediction……

Business Leaders Are Worried

Leaders not getting new

digital skills 6X more

likely to leave their org

within the next year

Believe digital will

disrupt their

industry

Whole new talent

base is needed to

compete

Organizations are not

correctly structured to

operate in this new

environment

Need a whole new

talent base to

compete

Don’t have the

right leaders

92%87

%

70%

6X

87%

70%

11%

Believe they the right

skills to compete

Only

Human Resources Response….

Integrated Solutions

Provider

Business Alignment &

Outcomes

New Innovative

Practices & HR

Infrastructure

Workforce Enter

Millennial Generation

HR TRANSFORMATION WAVE 2.0

New Transformation Principles

1HR must be adaptive… & Responding

to Business Problems

2From Silo Working to Supply

Chain Model

3Must Become Data Driven &

Forward Looking”

4

Speed, Agility & Responsiveness

must match other parts of the

business environment

New Transformation Principles

5One Size Fits All is Dead, Mass

Personalization is the key to success

6It is all about “Experience, Personal

learning , Reinvention & Fun”

7

Embrace Technology as a

enabler and partner

Innovative HR Practices

Data will proactively forecast people

challenges, issues and trends so

damage control can be done before the

event for effective talent management

Workforce planning will

become continuous,

collaborative, analytics driven

instead of annual exercise

Talent Acquisition Platform

manages employee referrals,

internal mobility and employer

branding in one solution power

with predictive intelligence,

process automation & real time

performance dashboard.

Simulations &

Gamification for

assessing the “best fit”

Performance assessment,

feedback and coaching

will become real time,

resolving issues quickly

Personalized

management of employee

based on their motivation

profile will increase

Innovative HR Practices

Compensation adjustment decisions will be

based maximum impact – maximum pay

Learning will be more and more anytime & any where.

MOOC ( Massive Open Online Courses)

Simulation, Gamification Driven

Embedded and Intelligent learning

Leadership assessment and development will

be more real time data based than core

psychological model based

Recognition will become data driven.

Metrics for recognition will emerge based

on company value and behavioural drivers

Career Mobility will assume “network

shape rather than vertical growth

Transactional HR activities will be

outsourced to service providers or driven

by self service platforms

New Rules Of Culture & Engagement

Dynamic measurement of

engagement as opposed

to static measures will be

required

Retention analysis

based on social data

activity analysis

Culture that accelerates team

work, breaks silo and keeps

connected

Use of social network will grow to

engage employees and further support

the building of employer brand

Career navigation

opportunities, building

relevant networks that

help employee complete

tasks successfully

Culture which instils

pride, respect and

happiness

Building The HR Infrastructure

Personal credibility, ability to change and reinvent

will become key to success

Predictive Data Analysis will drive decision making

in all HR practices

CoE and shared services model will change shape from

functional silos to integrated comprehensive solution provider

Web application first to Mobile application first

HR will necessarily have to learn the business well and

learn the language of business- finance very well

More line managers will shift to HR roles

The Future Is Now

And It’s All About People

…Reinvent HR…Recreate Possibilities

Thank You

Secondary Research Sources & Acknowledgement

Google Search

Cognizant Technologies

KPMG,Deloitte,PwC & other similar firms