Delivering Human Capital Management Transformation

 

If you are looking to evolve your Human Capital Management (HCM) and Payroll function, there are multiple paths you can follow. First, of course, as with any large purchase or investment, you must do your due diligence. However, our latest blog post aims to help you refine your thoughts and framework.

Generally, organisations follow the same broad and common framework:

  1. Analyse current architecture, data, and process
  2. Define requirements.
  3. Engage suppliers/partners.
  4. Refine and select the supplier.
  5. Agree on scope and budget.
  6. Agree on Legals
  7. Kick-off delivery as per the agreed programme.

The above of course oversimplifies this process as it can take a few months to work through this concisely and accurately, usually with many hurdles along the way. As a result, many organisations can lose sight of why they are in this process in the first place or can get lost in the multitude of options that suppliers can present.

So, we would like to help organisations with this by sharing our knowledge of a framework that can be used to deliver a solid operational base, allowing you to build on transformational objectives from there.

Operational

Any provider or partner you chose should deliver on all three of the following areas, depending on the scope:

  • Human Resources (HR)
  • Payroll
  • Time & Attendance (T&A)

However, selecting to right partner to deliver this concisely and effectively is vital.  Therefore, we suggest you should focus on three main areas:

  • People – Have you the right people for the project and post-project delivery (Target operating model)
  • Technology – Can the software helps us achieve our goals as a department/organisation? Are we engaged with an innovative company to drive the necessary changes?
  • Process – Are we over-engineering what we do? Can we simplify, and how?

Once you have the operational aspect nailed, you will want to focus on the transformational aspects that will help differentiate your business. We will mention a few below but the options are more comprehensive than these. We recommend defining what is vital for your business, as delivering transformation in every area is often not feasible or cost-effective.

Transformational

We always recommend focusing on the Operational as phase 1 and Transformation as phase 2 and possibly 3. In the Transformation phase, we recommend focusing on the following:

  • Talent Intelligence
    • Capability Academies
    • People performance
  • Employee Experience
    • Wellbeing & Employee Listening
    • Onboarding
  • Workplace Flexibility
    • Scheduling
    • On demand pay

Data & Insights / Analytics

What makes all this work is excellent data and the ability to extract insights from this data for either management or executive level. This is vital for good decision-making and is often forgotten or is an afterthought to a HCM transformation project.

To help qualify your due diligence process as you step through each area, ask yourself these questions? These questions help move you through different stakeholder approvals during the process.

  1. Are you turning HR into a Value Centre? – This will help your HR Directors’ business case
  2. Are you driving Efficiency & Capacity? – This will help your operations Directors’ business case
  3. Are you getting a return on investment? – This will help your Finance Directors’ business case

When all the steps are complete, and you have decided  you are happy, the real fun begins with delivery. Keep an eye out for our next post to see our thoughts on this.